Submissions and Reports

In its latest recommendations for the upcoming Budget, the Chamber has urged the Financial Secretary Paul Chan to implement short-term relief measures to alleviate the economic pressures faced by the public during these challenging times. The Chamber suggested that the government, among other measures, expand bond issues for additional cash inflows and impose a tax on non-Hong Kong resident digital service suppliers to generate more revenue.

The Chamber is generally supportive of the Government’s proposals to strengthen the energy efficiency of buildings and minimize Hong Kong’s carbon footprint through amending the Buildings Energy Efficiency Ordinance (Cap.610) (BEEO). At the same time, as this initiative would entail the expansion of the nature and scope of buildings which would be included under the BEEO, we recommend that consideration could be given by the Government to assessing the necessity and practicality of the proposed measures, as well as further consulting industry stakeholders on the implications of related amendments, so as to strike the right balance between meeting carbon neutrality goals and business needs.

The Chamber welcomes the revision of "Code of Practice - Safety and Health at Work in Confined Spaces". The Labour Department’s suggested revision of the Code of Practice is a major step in the direction of Vision Zero, as advocated by The International Social Security Association.

The Chamber welcomes the HKEX’s proposals to enhance the GEM Listing regime in light of the recent significant decline of listings. We nevertheless suggest that greater strides should be taken to attract GEM’s main intended beneficiaries – growth and small and medium sized companies (SMEs), who are crucial contributors to Hong Kong’s economy and prosperity as an international financial city – so as to facilitate the success of such reforms. Recommendations on how to achieve such objectives, comprising cost reduction and relaxing financial eligibility requirements for GEM listing, reducing the profit requirement for entry to the Main Board, as well as enhanced promotion and outreach, are also outlined in the response.

The Chamber welcomes and supports the proposals to introduce a patent box tax incentive in Hong Kong as this would encourage businesses to engage in more R&D and IP trading activities in the city. To further strengthen Hong Kong’s tax competitiveness as an international innovation and technology centre, and a regional IP trading centre, we suggest that consideration should be given to such aspects as taxing IP income at a lower rate, as well as widening the scope of eligible IP-related asset and income.

The Chamber is generally supportive of the Hong Kong Monetary Authority’s proposals to simplify the existing three-tier banking system – through merging Deposit-taking Companies with Restricted Licence Banks to form a new second-tier - and recognize the benefits of such reforms as enhancing the industry’s role in strengthening Hong Kong’s status as an international financial centre. At the same time, we suggest that consideration could be given to further consulting key industry stakeholders on the potential implications of such changes on the banking system, so as to achieve a balanced and sustainable implementation of the initiative.

The Chamber has offered recommendations on the Government’s policy priorities for Chief Executive John Lee’s formulation of his second Policy Address in the face of unprecedented challenges.

The Chamber welcomes the proposals to regulate such powerful greenhouse gases with high global warming potential and suggests that the Government takes into account the operational practicalities that businesses are faced with during the implementation. We propose that the Government defer the implementation of the ban on sale and supply, as well as on-product labeling requirements, to allow businesses more time to comply with minimal disruptions.

The Chamber supports global efforts to develop common standards for ESG reporting as they could provide a useful reference guide for investors and issuers. We venture to suggest a deferral of implementation of mandatory climate-related reporting standards to allow sufficient time for all market participants, especially smaller cap issuers, to comply. The proposed mandatory requirements should also consider such factors as practicability and proportionality to avoid listing rule violations.