Hong Kong’s leader has urged local businesses to proactively adopt more technologies to better survive the transition to full economic recovery, while expressing confidence an anticipated federal interest rate cut by the US would sustain local growth.
Chief Executive John Lee Ka-chiu made the remarks on Sunday at his second town hall meeting to gauge public views ahead of his policy address in October.
The meeting focused on improving Hong Kong’s economy, with representatives from different sectors highlighting the challenges they faced and what support they wanted from the government.
While Lee said authorities had a leading role to play in developing the economy, the private sector also needed to adopt innovation and drive growth.
“Much of the feedback I heard today asked for the government’s help in developing policies and allocating more resources, but my bigger takeaway is that an all-rounded participation is needed,” he said.
In response to multiple speakers who suggested the adoption of artificial intelligence (AI) across the marketing, legal, housing and healthcare sectors, Lee said procurement had to be done by the market.
“For technology to really be adopted into operations, companies need to do the procurement. The government can play a leading role but it will have to depend on industry players,” he said.
Lee pointed out that many suggestions for improving tourism across Hong Kong’s 18 districts required the participation of local organisations and industry players.
“The government will build the platform, but for initiatives to really take off, it requires the participation of all residents.”
In view of the US potentially cutting its key interest rate from its current 23-year high in September, Lee expressed optimism that the move would help Hong Kong’s economy and sustain its growth.
He said the economy had grown by more than 3 per cent in the latest quarter and that the upwards trend would remain positive.
“No matter what, I think an interest cut will help us as investors, and businesses will be more confident,” he told a press briefing after the meeting.
“Many investors are hoping for more certainty before they invest, although they have the capital.”
Hong Kong’s economy expanded by 3.3 per cent in the second quarter against a year ago on the back of strong exports, slightly exceeding growth recorded in the first three months of 2024.
But certain industries had been struggling to survive during the transition period, and some businesses had closed, Lee noted.
“Of course, during this period, the market will see a renewal. Some shops will open, some shops will close,” he said, adding the government would do its best to help the hardest-hit industries.
The two-hour televised town hall event was attended by residents from various backgrounds who were invited by authorities.
Other issues covered at the event included better mental health support for caretakers and students, and more resources for care homes for the elderly, ethnic minority groups and people with special needs.
Top government officials also attended the meeting, including finance minister Paul Chan Mo-po, No 2 official Eric Chan Kwok-Ki and Secretary for Justice Paul Lam Ting-kwok, among others.
Lee told the press briefing that many of the opinions he received aligned with the three areas he was seeking feedback on: fully developing the economy and focusing on improving people’s livelihood; strengthening the city’s existing advantages and creating new growth areas; and taking advantage of national and global opportunities.
He added that the government had also received words of encouragement during the process.
“This also strengthens my belief that as long as the government’s policymaking is centred around the people, it will receive the approval of residents,” he said.
Lee added that the consultation process showed residents loved Hong Kong and had confidence in the city, adding that people were willing to support local development.
The city leader said the two town hall sessions had been attended by more than 240 people, including young people, elderly residents, professionals and low-income earners.
The chief executive held a town hall consultation last week at Tai Po Government Primary School, which was attended by 120 residents invited by authorities.
He added that since he announced the consultation process for his policy blueprint on July 16, the government had hosted more than 30 other such events, where authorities heard opinions from lawmakers, labour organisations, religious groups and civil servants.
