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Budget 2025: 2% cut for public universities
- 2025-02-26
- The Young Reporter
- By: WONG Hong Ni、QIN ZiyangEdited by: ALISHIBA MATLOOB
- 2025-02-26
Financial Secretary Paul Chan Mo-po proposed a cut of 2% in university grants each year over the next three years to reduce the HK$87.2 billion deficit in his latest budget address today. The government will save about HK$2.8 billion in total after the reduction. The public universities will have to return HK$4 billion to the government on a one-off basis in the 2025-26 financial year from their balances of the General and Development Reserve Fund (GDRF). "I must stress that this funding level is still higher than the HK$63.2 billion in the last triennium," Chan told the Legislative Council, referring to automatic annual increases. Eight universities receive the grants from the University Grants committee, with 78% used for teaching, 20% for research funding and 2% for professional activities. Cheung Chi-keung, the Head of the Department of Educational Administration and Policy at the Chinese University of Hong Kong, warned that funding cuts will have long term consequences. “Compared to Singapore, if we cut the grant and increase the tuition fee,” said Cheung, “it is not an ideal situation for Hong Kong's education development and ability to attract talent.” He said it is still affordable for universities to have less grants because they have sufficient reserves. Some students are worried the funding cut will impact their studies. Hannah Li, a finance student at Hong Kong Baptist University, is worried university-funded workshops could disappear. April Zhao, a doctoral student in social work at Hong Kong Baptist University, said she is concerned it will impact student resources.
Budget 2025: Third medical school to be decided soon
- 2025-02-26
- Health & Environment
- The Young Reporter
- By: XU Jingyi、Wong Kit YingEdited by: HWANG Saewon
- 2025-02-26
The government will decide this year which university will run the new medical school, Paul Chan Mo-po, Financial Secretary, said in his budget address today. The new third medical school was announced in October last year and local universities were invited to submit proposals. The Task Group listed out ten key parameters for the third new medical school on Nov. 28, 2024, including innovative strategic positioning from other two local universities; collaboration with healthcare institutions in the Greater Bay Area, student admission programme to both local and non-local students etc. Three universities have said they will submit proposals, including Hong Kong Baptist University which runs the city’s only school of Chinese Medicine. Dr. Manson Fok, the co-chairman of the HKBU Preparatory Committee for the new hospital, said in a public meeting on Feb 24 that the vision for the new medical school is to foster integration and cooperation of both Eastern and Western medical practices through innovative education and transdisciplinary research. Fengmei Lin, 21, a Chinese medicine student at HKBU, said, "If the new medical school can be successfully established, it will be able to achieve a deep integration of Chinese and Western medicine, and further improve the construction of Chinese medicine clinics." "We urgently need to build a new medical school and increase the number of admissions,” said Nickie Chen, an assistant teacher of Chinese medicine at HKBU. “At present, we already have a Chinese medicine hospital, and HKBU’s lack of a Western medicine hospital restricts the development of students.” Lin Chenxi, a year 4 Chinese medicine student, said, “Once the new medical school is established, we will have a stable internship place and more employment opportunities after graduation. This is effective in solving the shortage of medical personnel, which is of great significance to the sustainable development of …
Budget 2025: Hong Kong unveils HK$10 billion drive for AI industry growth
- 2025-02-26
- The Young Reporter
- By: Ruoyu LI、CAO SiyuanEdited by: WANG Ludan
- 2025-02-26
The budget set aside HK$10 billion to establish an innovation and technology industry-oriented fund to channel investment toward the industries of the future. It is part of Financial Secretary Paul Chan Mo-po's strategy to “put AI at the core of developing new quality productive forces.” “The goal is to make Hong Kong an international exchange and cooperation centre for the artificial intelligence industry," Chan told the Legislative Council in his budget speech. Another HK$1 billion will go toward establishing the Hong Kong Artificial Intelligence Research and Development Centre, which will come under a new Digital Policy Office that will focus on research and development. “The Hong Kong Artificial Intelligence Research and Development Centre will contribute to the local AI ecology and provide jobs for Hong Kong AI talents if the plan can be implemented properly," said Wan Renjie, Professor of computer science at Hong Kong Baptist University who is familiar with the AI ecosystem in both Singapore and Hong Kong. Artificial intelligence and data science are listed as one of the three emerging industrial development sectors in Hong Kong, according to the Hong Kong AI Development Research. The report indicates that 41% of Hong Kong enterprises are currently or plan to adopt AI, while 32% have already applied AI across multiple levels, such as marketing and operations. “It is necessary to allocate part of the budget to invest in AI, though the Hong Kong government cannot predict when it will yield returns,” said Wan. “Once Hong Kong has nurtured an impressive, influential and independent AI enterprise, the return will be immeasurable,” he added. Rodas Sun, 24, Chief Technology Officer of aiKnow, a start-up that focuses on providing business AI models to large-scale companies, said many start-ups now rely on government funding, but they are not truly developing AI products with …
Budget 2025: Improved financial connectivity to boost Hong Kong’s role as RMB trading hub
- 2025-02-26
- Politics
- The Young Reporter
- By: CHEN Ziyu、ZHENG XinyiEdited by: CAO Jiawen
- 2025-02-26
Financial Secretary Paul Chan Mo-po has proposed to enhance Hong Kong’s position as a Renminbi trading hub. The People’s Bank of China and the Hong Kong Monetary Authority will start working together to provide “round-the-clock” and “real-time” small-value cross-boundary remittance services for residents of Hong Kong and the mainland as soon as the middle of this year. “The HKMA will launch an RMB Trade Financing Liquidity Facility for banks as a stable source of relatively lower-cost funds to support banks in providing RMB trade finance services to their corporate customers. The new facility has a total size of 100 billion yuan,” Chan said. According to a report from the Society for Worldwide Interbank Financial Telecommunication, the value of RMB payments increased 2.1% compared to December 2024. Hong Kong handled 78.67% of RMB payments excluding the mainland. Inconvenient renminbi remittance service has been problematic for mainland residents and Hongkongers alike. XiXi Chen, 23, is a mainland student at the University of Hong Kong. “The driver pulled me out because I did not have any cash. It is quite embarrassing,” said Chen. “ I am happy that the government will implement the remittance service so that I will not have to wait for payment.” Cory Choi, 22, a Hongkonger who worked at American International Assurance said before COVID-19, shopping and consumption in the mainland was quite inconvenient. “I was accustomed to bringing a lot of cash. When I tried to pay, the shops told me they did not have change for me,” said Choi. “But since last year, I found I could go to the mainland to shop by just bringing my phone and my Home Return Permit. The e-payment methods in Hong Kong can also be used in the mainland,” Choi added. According to WeChat Pay Hong Kong, more than 3.64 …
Budget 2025: Budget disappoints elderly and grassroots
- 2025-02-26
- Society
- The Young Reporter
- By: CHENG Tsz Sen Sean、SIU Tsz HangEdited by: Cheuk Chi Maggie YEUNG
- 2025-02-26
The Society for Community Organisation said today that the latest budget proposals are disappointing for Hong Kong’s grassroots and elderly communities. SOCO deputy director Sze Lai-shan said they had hoped for increases in welfare payments to caregivers, elderly people and single non-permanent residents. There is none of this in the budget. For the elderly, Financial Secretary Paul Chan Mo-po proposed to expand the Residential Care Service Voucher Scheme by 1,000 to 6,000 total and the number of vouchers under the Community Care Service Voucher Scheme by 1,000 to 12,000 total. He also promised to boost senior citizens’ buying power by providing an one-off allowance to eligible social security recipients, equal to half of the standard monthly rate for Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. This payment will range from around HK$1,000 to HK$3,600. But Sze said the budget plan is sacrificing the interest of elderly people. “Since elderly people are earning less money, they rely on the government’s support. The government should consider developing the economy without exploiting elderly people’s welfare,” Sze said. Construction worker Lee Cheuk-ming, 61, said the government should not be harsh on elderly people. “The government pointed its knife to the elderly in this budget plan. Freezing civil service workers' salaries is not enough. Cutting parts of their welfare to cover community support is what we want in this budget plan,” Lee said. Lily Kwan, 69, said that elderly people should receive more financial support despite the fiscal deficit. Kwan said that it is better to have the extra allowance than nothing, at least she can have one better meal. “The government should spend more on our living quality and sense of well-being,” she added.
Budget 2025: Talent admission schemes receive over 430,000 applications
- 2025-02-26
- The Young Reporter
- By: ZHONG Xinyun、CHEN XiyunEdited by: YANG Haicen
- 2025-02-26
Various talent admission schemes have received more than 430,000 applications and approved more than 270,000 by the end of last year, said Financial Secretary Paul Chan Mo-po in the budget address today. “The budget is set to attract international talent and nurture local talent, reinforcing the city’s status as an international hub for high‑calibre talent,” Chan said. So far, 180,000 talents have arrived in Hong Kong since the scheme started two years ago. The budget also said Hong Kong will host the upcoming global talent summit early next year, and the government will introduce a scholarship targeting students from ASEAN and Belt & Road regions. “This equates to 10,000 new arrivals per month,” said Shang Hailong, Member of the Legislative Council and founder of the Top Talent Service Association. He added that because so many talents have arrived, some may have trouble finding jobs at first. Wan Jiachen, 26, settled in Hong Kong two years ago through the Top Talent Pass Scheme after graduating from Columbia University in the United States. It took him a few months to find work. “The house rent is really expensive and the cost of living is actually quite high,” said Wan, who found a job with the Bank of China. “It would be better if the government could arrange more similar accommodation for foreign talents or provide rental subsidies for foreign talents.” “It is hard to provide direct fiscal support for talents like housing welfare,” said Shang. “Because the median wage level of top talents is HK$50,000, which surpasses the requirements of incentives set for assisting local residents.” Non-local students who graduate from five of the city’s universities are also eligible for the top talent visa. Some of these students said it has been difficult to find a job in Hong Kong. “Hong Kong …
Budget 2025: Paul Chan eyes Kai Tak Sports Park to spur tourism
- 2025-02-26
- Society
- The Young Reporter
- By: ZHOU Yun、TANG SiqiEdited by: WANG Jing
- 2025-02-26
Financial Secretary Paul Chan Mo-po proposed in today’s budget speech that has his eyes on Kai Tak Sports Park to spur the tourism industry. “The Government has been supporting the staging of major international sports events in Hong Kong through "M" Mark System. We will adopt a more strategic approach in continuously attracting sports events which can bring significant economic benefits to Hong Kong, and are in discussion with LIV Golf which has been held in Hong Kong for two consecutive years to explore long-term partnership,” he told the Legislative Council this morning. Following the completion of five tests on the venue, including the ticketing system and crowd management, the park is set to officially open in three days. “The park will provide a world class venue for hosting international mega events, taking forward the development of culture, sports and tourism as an industry in Hong Kong,” said Chan. In 2024, 4.5 million visitors came to Hong Kong, an increase of 32.35% from 2023, according to the government figures. “Modern culture, such as sports events and concerts, are important elements in driving tourism today,” said Ervi Liusman, Senior Lecturer of Hotel and Tourism Management at the Chinese University of Hong Kong. The Kai Tak Sports Park has 50,000 seats, which is about four times more than that of the AsiaWorld-Expo. “Some international singers who want to hold concerts in Hong Kong gave up their bids due to venue size restrictions,” Liusman said. “But Kai Tak Sports Park offers a lot more space.” The park is the only venue in Hong Kong that meets the requirements of multiple international events, which can host sports and cultural activities under any weather conditions. Up till now, the park has contacted over 200 local and overseas sports and non-sports event organisers. About 50 companies …
Budget 2025: Waste-to-energy scheme and electric taxis in Green City plan
- 2025-02-26
- Society
- The Young Reporter
- By: CHEN Yongru、LIN XiaoyouEdited by: Lok Tung LAU
- 2025-02-26
Hong Kong Financial Secretary Paul Chan Mo-po announced this morning a plan to get rid of Hong Kong’s landfills. “I·PARK1”, the first waste-to-energy facility for treating municipal solid waste, will be commissioned this year. A second major facility, “I·PARK2”, is up for tender. Once completed, “I·PARK2” is expected to treat 6,000 tonnes of municipal solid waste per day. This year's Green City proposals also include fare reduction and recycling, green transformation of public transport, and smart green mass transit systems. To enhance waste reduction from the source, Chan said the government will allocate an additional HK$180 million to increase the number of smart food waste recycling bins and food waste collection facilities in residential buildings across Hong Kong, expand the recycling network, and increase the amount of waste collected. According to the Environmental Protection Department, “I·PARK1” advanced incineration technology, combined with mechanical sorting and recycling facilities to recover resources from municipal mixed waste and convert the generated heat into electricity, reducing pollutant emissions “Hong Kong is in urgent need of facilities such as I·PARK1 and I·PARK2 in order to convert waste into energy,” said Tsou Jin-yeu, the Founding Committee Member of the China Green Building (Hong Kong) Council. Leung Yee-tak, Chairman of the Asian Intelligent Building Association, said construction waste is still a problem. “Ash produced after incineration, including bottom ash and fly ash, needs to be properly disposed of.” Leung said. “At present, there is excess capacity of building materials in the mainland, the demand for furnace bottom ash is not high, and the treatment technology of fly ash is not mature.” “Although the facility is capable of generating electricity, the incineration process can still produce pollutants, so it needs to be strictly controlled,” he said. “Another key point to achieving energy saving is the user. The government should …
Budget 2025: HK$2 transport subsidy scheme capped at 240 trips a month
- 2025-02-26
- Society
- The Young Reporter
- By: LEUNG Chi Ngai、YAM Long Hei JamieEdited by: Chun Lim LEUNG
- 2025-02-26
Passengers of public transport over 60 years old will have their HK$2 rides limited to 240 trips per month, Financial Secretary Paul Chan Mo-po proposed in this year’s budget speech. For trips below HK$10, eligible passengers will continue to pay HK$2, but for trips costing more than HK$10, they will have to pay 20% of the total fare. The updated scheme preserves the policy intent while striking a balance on “enhancing the sustainability of the scheme and minimising the impact on the beneficiaries,” said Chan. Government reimbursements to public transport operators is estimated to hit a record high of HK$5.4 billion in 2025-2026, more than tripled compared to HK$1.4 billion in 2021-2022, according to government figures. Currently, the HK$2 subsidy scheme which allows all permanent residents over 60 years old to take public transport for two dollars per trip comprises 0.7% of the total government recurrent expenditure. Dai Fung-wa, 80, who lives in Mei Tin Estate in Tai Wei, said the new policy is unfair to people over 70 years old. Dai said people between 65 and 70 years seldom take public transport after retirement. “You can still work in your 60s, but if you are over 70, you can only take care of your grandchildren at home,” Dai said. Government figures show that 49.4% of residents aged between 60 and 64 years were in the labour force in the past three months, compared to 13.7% of those over 64 years old. Government expenditure on the HK$2 scheme is more than doubled in 2022-2023 from HK$1.4 billion to HK$3 billion, when the eligibility age was lowered from 65 to 60, with extended coverage to include red minibuses, kaito ferries and trams. Lam Chun-sing, Legco member for the Federation of Hong Kong and Kowloon Labour Unions said subsidising transport for …
Budget 2025: Government proposes fiscal consolidation measures to cut expenses
- 2025-02-26
- The Young Reporter
- By: NG Natasha Goa Sheng、MAO AnqiEdited by: CHAN Wing Yiu
- 2025-02-26
The government has proposed to cut 7% of government recurrent expenditure from now to the 2027-2028 fiscal year, Financial Secretary Paul Chan Mo-po said in the budget address this morning. A “reinforced version” of the financial consolidation programme is coming soon, with the purpose of restoring HK$6.2 billion of expenditure over the next five years. “Strictly containing public expenditure is a must, but we should proceed in a steady and prudent manner and be careful to find a balance among the various impacts that may arise in the process,” Chan said. In the 2024-2025 fiscal year, Hong Kong recorded a deficit of HK$87.2 billion, 60% higher than the forecasted deficit of HK$54.4 billion last year, according to the government. In this year’s budget, the total estimated expenditure stands at HK$639.7 billion, an increase of 2% from the previous year. Terence Chong Tai-leung, Professor of economics at the Chinese University of Hong Kong, said Hong Kong’s economic performance is not as bad as widely perceived. “Hong Kong’s financial expenses have always been stable. It is normal to observe deficit fluctuation throughout the business cycle,” he said. To reduce the deficit, Chong suggested the government can work on land sales and budget upper limits. “I suggest further dividing large areas of land into smaller ones, and then selling more of them to small- and medium-sized enterprises and overseas companies, instead of strengthening the local monopoly,” he said. Other proposals to reduce expenditure include increasing the rate of reduction of recurrent government expenditure from 1% to 2% in 2025-2026, under the premise of not affecting Comprehensive Social Security Assistance, Social Security Allowance and other statutory expenditures. The policy will be extended to 2027-2028 and is expected to save the government around HK$3.9 billion, HK$11.7 billion and HK$19.5 billion in the following three financial …