Hong Kong leader focuses on livelihood issues, positioning HK as global hub
HONG KONG (Reuters) -Hong Kong’s leader kicked off his annual policy address on Wednesday with pledges to reform shortcomings including reducing wait times for public housing as authorities focus on livelihood issues and introduced a string of measures to boost the economy.
John Lee, in his third policy address as leader, said officials will streamline procedures for companies seeking to list in Hong Kong and strive for more international company listings on its stock exchange.
The government said it will create a commodity trading ecosystem, establish a fuel bunkering centre, seeking to tap opportunities in green shipping and aviation.
Hong Kong’s small and open economy has felt the ripple effects of a slowdown in the Chinese economy. It grew by 3.3% in the second quarter from a year earlier, and is forecast to grow 2.5%-3.5% for the year.
Although tourism numbers have rebounded since COVID, with 46 million visitors expected this year, consumption and retail spending remain sluggish, while stock listings have dried up and capital flight remains a challenge.
The duty on liquor will be cut to 10% from 100% above HK$200 ($26), Lee said. It will only be applicable to liquor with an alcoholic strength of more than 30%.
The move will help Hong Kong, which has some of the highest duties on liquor globally, “promote liquor trade and boost development of high value added industries including logistics and storage, tourism as well as high end food and beverage consumption,” he said.
It may aid the city into turning into a spirits trading hub in the way that it became an Asian wine trading hub after wine duties were abolished in 2008.
The move may also benefit local bars and restaurants that have struggled since COVID, with many local residents now opting to travel across the northern border to the Chinese city of Shenzhen to dine more cheaply.
Retail sales were down 7.7% for the first eight months of 2024 compared with the same period a year before.
New government committees will also be set up to explore the development of new tourism areas, a low altitude economy with services like delivery drones and businesses and services catered at the elderly, Lee said.
($1 = 7.7684 Hong Kong dollars)