4th January 2025 – (Hong Kong) The consultation for Hong Kong’s 2025 Budget has officially commenced, with Financial Secretary Paul Chan engaging with approximately 130 citizens this morning on RTHK. Chan emphasised that while economic growth remains steady, it has not met expectations, with post-pandemic deficits posing significant challenges. He acknowledged the necessity of enhancing resources to stimulate economic development while also responding to merchants requesting rent reductions for street markets.
In response to suggestions for land sale rebates and reconsidering the land use policy due to disappointing land sale reactions, Chan firmly rejected these proposals. He maintained that the government must retain control over land management and stressed a guiding principle of “those who can pay more should” to lessen the impact on the general public.
Chan noted that the current economic indicators are stable, with an inflation rate of 1.1% and an unemployment rate of 3.1%. He described the housing market as stable, with increasing transaction volumes and a notable rise in international visitors, up by 30% compared to 2023. The influx of foreign companies and tourism suggests a positive trend for future job creation, fostering a sense of optimism among stakeholders.
During the session, various citizens presented their ideas, including the establishment of large resort complexes to attract tourists and initiatives to support local businesses. Chan acknowledged the need for targeted investments to bolster retail, which has experienced negative growth for 11 consecutive months.
The Financial Secretary also addressed concerns about potential restrictions on the HK$2 public transport fare concession, indicating that the Labour and Welfare Bureau is currently studying the matter. He assured attendees that the government is attentive to community feedback and is exploring solutions to enhance the financial landscape.
Despite a forecasted deficit of HK$48.1 billion for the current fiscal year, Chan recently revised this estimate, predicting it could exceed HK$100 billion due to underwhelming land sale revenues. With the city facing its third consecutive year of significant deficits, financial experts have suggested that public sector salaries may need to be reconsidered, though there are concerns about the broader economic implications of such measures.
Chan also emphasised the need for innovation within the financial sector and the importance of attracting investment to ensure Hong Kong’s economic resilience.
