Chief Executive Carrie Lam discussed her latest Policy Address and shared her optimism for the city’s future development with Hong Kong executives at the Joint Business Community Luncheon on 2 November.

She said that the buzzword defining her latest Policy Address and plans for the city was “new.”

“Hong Kong is entering a new era. We will shortly welcome a Legislative Council based on a new electoral system and we will be governing with a new paradigm,” she said. “There will be new impetus to Hong Kong’s economy, and we can all welcome a new future.”

The current HKSAR government must also provide fresh ideas and innovation in taking Hong Kong forward, Lam added. On this theme, the biggest proposal in this year’s Policy Address was the Northern Metropolis Development Strategy. This ambitious plan will create a new urban area in the north of the SAR including technology parks, new homes and businesses, as well as enhanced transport connections with the rest of the Greater Bay Area. 

She described the plan as not just a physical development but also one that requires a new mindset: “It is a new spatial conceptualization, looking beyond Hong Kong’s geographical layout into Shenzhen, the Greater Bay Area and the Mainland.”

A second buzzword the Chief Executive shared was “confidence.” 

“I am extremely confident about Hong Kong’s future,” she said. “This confidence is built on a very strong basis; it is not wishful thinking.”

Lam then ran through the reasons for her confidence: firstly, the restoration of law and order to the city after the upheaval of 2019. She said that the recent changes to the structure of the Legislative Council mean there is still room for disagreement among lawmakers, but they should strive to build a consensus so Hong Kong can move forward. 

“The second basis for my confidence is that Hong Kong’s fundamental strengths have not been weakened or eroded over the last two years or so,” she said. “On the contrary, many people have come to appreciate our fundamental strengths.”

First and foremost among these is the rule of law. Hong Kong continues to have a very transparent judiciary that has made the city one of the most attractive arbitration centres in the world. Hong Kong remains highly ranked globally in areas like our financial services sector, world-class universities and our free economy, and is improving its global standing on innovation and technology. Meanwhile, we have recovered ground in rankings of city safety after the quelling of the violence in 2019. 

The third reason is the hard data that demonstrates Hong Kong’s economic resilience, with 2021 likely to finish at the higher end of the Government’s 5.5 to 6.5% growth target. Merchandise trade, food and beverage, retail, horse racing and air cargo are among the areas where Hong Kong has seen a marked recovery this year, while the three-month unemployment rate dropped to 4.5%. 

“All these figures confirm that Hong Kong’s economy is very resilient and Hong Kong people are very resilient. When circumstances improve, we will bounce back very quickly.”

The Chief Executive added that the city’s athletes had also made the city proud this year with their successes in the Tokyo Olympics and National Games. 

The fourth reason for Lam’s confidence is the “staunch and unfailing support of the Central Government.” In particular, the Chief Executive noted Beijing’s support for not just Hong Kong’s traditional industries, but also other sectors including culture, innovation and technology, intellectual property and aviation. 

Acting as a bridge, Hong Kong will continue to serve the nation but also to benefit for continued opening up and cooperation, she added. For example, the introduction of new cross-border schemes such as the Bond Connect and Wealth Connect are creating new opportunities for investors.

The Chief Executive then acknowledged that the key concern of businesses right now is when they can resume travel. She reassured the audience that this is top of her agenda as well, and that this was why her Government had recently tightened its quarantine and other Covid measures. 

“We are 100% committed to the resumption of travel with the Mainland and hopefully thereafter with overseas destinations, for businesses and the people of Hong Kong,” she said. 

The resumption will be very gradual: business needs will take precedence over tourism at first, and there will be quotas and other conditions.

Lam appealed to the business community to help facilitate the opening up of the border by mandating use of the LeaveHomeSafe app for people entering their premises, and encouraging people to get vaccinated.

The Joint Business Community Luncheon, organized by HKGCC and the other major local and international chambers, has been an annual event for more than 20 years. The Chief Executive said that she welcomes the opportunity to speak to the business community and that she hoped this tradition would continue for many years to come.

Due to social distancing rules, the in-person luncheon was much smaller than usual, with the majority of participants attending online. We hope the easing of Covid-related restrictions will enable us to return to a full-scale Joint Business Community Luncheon next year.