Hong Kong SAR’s 2024 Policy Address: A Vision for Economic Revitalization

On October 16, 2024, John Lee, the Chief Executive of the Hong Kong Special Administrative Region (SAR), delivered a comprehensive Policy Address aimed at injecting new vitality into the city’s economy. This address marks a pivotal moment for Hong Kong as it seeks to navigate the complexities of a post-pandemic world while positioning itself as a global economic hub. The measures outlined in the address focus on both established and emerging industries, showcasing a multifaceted approach to economic growth.

A New Era for Commodity Trading

One of the standout proposals from Mr. Lee’s address is the creation of a commodity trading ecosystem designed to attract relevant enterprises to Hong Kong. This initiative aims to transform the city into a central operation hub for international commodity trading, encompassing storage, delivery, shipping, logistics, and risk management. By fostering a robust market for commodities such as gold and non-ferrous metals, Hong Kong can enhance its status as a leading international financial, shipping, and trade center.

Mr. Lee emphasized the importance of developing world-class gold storage facilities, which would facilitate the storage and delivery of spot gold for investors and users. This move is expected to stimulate demand for related financial services, including collateral and loan businesses, thereby opening new avenues for growth within the financial sector.

Strengthening Financial Services

To bolster Hong Kong’s role as a global financial center, the government plans to enhance the mutual market access regime and reinforce the city’s position as the world’s largest offshore Renminbi (RMB) business hub. This initiative is crucial for the internationalization of the RMB, which has gained traction in global markets. Additionally, the government will work to improve the Cross-boundary Wealth Management Connect Scheme, facilitating greater financial collaboration between Hong Kong and mainland China.

Revitalizing Tourism

Tourism, a cornerstone of Hong Kong’s economy, is set to receive a significant boost under the new policy framework. Mr. Lee envisions transforming Hong Kong into a premier tourism destination by leveraging its unique resources, including the iconic Victoria Harbour, outlying islands, and rich cultural heritage. The government plans to publish the Development Blueprint for Hong Kong’s Tourism Industry 2.0 later this year, focusing on promoting culture, sports, and eco-tourism, as well as developing visitor markets in the Middle East and ASEAN Member States.

A Working Group on Developing Tourist Hotspots will be established to identify and enhance popular tourist attractions across various districts, ensuring that the concept of "tourism is everywhere in Hong Kong" becomes a reality.

Enhancing the Food and Beverage Sector

In a bid to stimulate the food and beverage industry, Mr. Lee announced a reduction in the import duty on liquor. This measure aims to foster liquor trading and boost the development of high-value-added industries, including logistics, storage, and tourism. By creating a more favorable environment for the food and beverage sector, the government hopes to attract both local and international businesses, enhancing Hong Kong’s reputation as a culinary destination.

Addressing the Silver Economy

Recognizing the growing demand for products and services catering to the elderly, the Policy Address also highlights the importance of the silver economy. A Working Group on Promoting Silver Economy will be established to implement measures across five key areas: silver consumption, silver industry, quality assurance of silver products, silver financial and security arrangements, and silver productivity. This initiative reflects a commitment to ensuring that Hong Kong’s aging population has access to the resources and services they need to lead fulfilling lives.

A Vision for the Future

In his closing remarks, Mr. Lee expressed optimism about Hong Kong’s economic future, stating, "Through our united efforts to reform and innovate, our economy will go even stronger, and our people will lead a better life, making Hong Kong a shining city." The measures outlined in the 2024 Policy Address represent a strategic vision for revitalizing the economy, fostering growth across various sectors, and enhancing the quality of life for residents.

For more information about the Policy Address and its initiatives, visit www.policyaddress.gov.hk.

Conclusion

As Hong Kong embarks on this ambitious journey towards economic revitalization, the 2024 Policy Address serves as a roadmap for growth and innovation. By focusing on key sectors such as commodity trading, financial services, tourism, and the silver economy, the government aims to position Hong Kong as a dynamic and resilient global economic hub. The coming years will be crucial in determining the success of these initiatives and the overall trajectory of Hong Kong’s economy.