Published: 09:47, September 17, 2025 | Updated: 12:56, September 17, 2025
Economy, livelihood at core as HK leader delivers annual Policy Address
By Shamim Ashraf in Hong Kong
Hong Kong Chief Executive John Lee Ka-chiu delivers his 2025 Policy Address at the Legislative Council building in Hong Kong, Sept 17, 2025. (ADAM LAM/CHINA DAILY)

Hong Kong Chief Executive John Lee Ka-chiu is delivering his annual Policy Address designed to deepen reforms for the people, boost the economy, and enhance livelihoods, while leveraging the city's strengths.

Donning a specially designed green tie, he started delivering the fourth Policy Address of his five-year term at the Legislative Council at 11 am on Wednesday.

The CE said his fourth policy blueprint will serve as a roadmap for the special administrative region to achieve a vibrant economy, pursue development, and improve people's livelihood – accelerating the city’s advancement from stability to prosperity.

“It also outlines a strategic plan for Hong Kong to proactively align with national development strategies and achieve breakthroughs in forging a new landscape,” Lee said, adding that his ultimate objective in governance is to improve people’s livelihood with better housing for members of the public, higher income for workers, enhanced care for the elderly, and greater prospects for young people.

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Saying that the economy and people's livelihood are mutually reinforcing, the CE said he has been pushing reforms since assuming office in 2022, both within the government and in the wider community, to facilitate economic growth and improving people's livelihood.

“I have transformed and instilled in the government a culture that is ‘result-oriented’.

Pointing out that his government has been pressing ahead with public housing production and introduced Light Public Housing, the CE said while applicants for public rental housing waited an average of 6.1 years for a flat three years ago, the composite waiting time is now 5.1 years.

Over the same period, the median household income rose by HK$3,000, an increase of 11 percent, he added.

Economic rebound

Lee said the economy has rebounded since he assumed office, turning from negative to positive and gaining momentum, with this year's growth projected at 2 percent –3 percent.

“In the past three years, Hong Kong has moved up one place to become the third-ranked global financial center and has climbed four spots to rank third globally in overall competitiveness. In the last two years, we have risen 12 places to the fourth globally in talent competitiveness. Furthermore, Hong Kong is ranked seventh among the world's top 10 safest cities.”

Northern Metropolis development

Terming the Northern Metropolis as the new engine for Hong Kong's economic development, the CE said he will accelerate its development and set up the Committee on Development of the Northern Metropolis under his guidance to formulate operational models for the various development areas therein.

“I will also expedite the development of the University Town, streamline administrative procedures by removing barriers and easing restrictions, adopt safe, efficient and cost-effective construction practices, and introduce dedicated legislation to fast-track the Northern Metropolis development,” he said.

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The SAR government will attract and cultivate industries to create jobs and enhance productivity and preferential policy packages will also be formulated to improve efficiency and flexibility in negotiations with enterprises that are establishing and scaling up operations.

This Sept 17, 2025, photo shows the chamber of the Legislative Council Complex in Hong Kong, as Chief Executive John Lee Ka-chiu delivers his 2025 Policy Address, Sept 17, 2024. (ANDY CHONG / CHINA DAILY)

HK-mainland cooperation

Pointing out that Hong Kong enjoys the unique advantages of attracting overseas enterprises and assisting mainland enterprises to go global under the "one country, two systems" policy.

While Hong Kong earlier focused primarily on bringing in enterprises, achieving remarkable growth and success, the new opportunities ahead for Hong Kong will come from helping mainland enterprises expand abroad, he said.

“The government will leverage Hong Kong's strength as a platform for going global to reinforce the role of Hong Kong as an international center, capitalizing on our advantages in areas such as finance, trading, professional services, supply chain managemen,t and professional networks, creating more jobs and higher income, further promoting the headquarters economy to unlock more business opportunities.”

The city will also develop education, technology, and talent in an integrated manner, and press ahead with the integrated development of culture, sports, and tourism, enabling the people of Hong Kong to live in a community witha thriving economy and vibrant culture, he added.

Strengthening governance

To ensure that a culture of continuous improvement can take root, the Hong Kong leader will establish an accountability system for Heads of Department by systematizing and institutionalizing their responsibility for their departments, and enhance the appraisal system for civil servants.

An AI Efficacy Enhancement Team will be set up to drive technological reform, coordinating and steering government departments in the effective use of artificial intelligence technology and in the re-engineering of outdated workflows, he said.

Hong Kong ranked second globally in government efficiency in the World Competitiveness Yearbook 2025, which reflects well on the city’s civil servants being an outstanding team, and the reforms introduced by the current-term government, alongside the concerted efforts of the civil service, he said.

Stressing the importance of effective management, the CE said senior civil servants are all responsible for management. “I have therefore been considering ways to strengthen their sense of responsibility to enhance the overall management standard of the departments.”

The most direct and effective way to do this is to strengthen the accountability of the Heads of Departments by clearly emphasizing that HoDs are tasked with building a strong management team, and lead their senior civil servants to jointly manage staff and operation systems, he added.

Lee said he will promote the development of AI+ with a strong emphasis on safety risk prevention, and implement AI government services and facilitate the wide-scale application and development of AI across different sectors in society to boost overall efficiency.

“I will also put into practice the philosophy of better integration of ‘an efficient market’ with ‘a capable government’, and introduce a market-based business model to enhance the services of the Leisure and Cultural Services Department (LCSD).”

Serious problems will now be subject to investigations from an independent panel under a two-tier system on wrongdoing, the CE said.

The existing functions of the Public Service Commission will be expanded to enable it to conduct investigations and the investigation panel will be independent from the government to ensure impartiality and will be able to examine civil servants of all ranks. Investigations from the panel would be activated after the director of the bureau notifies their secretary of department concerned and obtains the latter's agreement, the CE added.

Speaking on improving governance at the district level, the CE said the SAR government set up the Steering Committee on District Governance and the Task Force on District Governance in July 2023 to strengthen coordination in addressing issues such as environmental hygiene, community beautification, facility development and community services more effectively.

Improving people's livelihood

The CE said the “most extensive chapter” of his latest Policy Address will focus on improving the livelihood of city residents, encompassing nine critical areas essential to the well-being of the community, covering land and housing, transport, healthcare, social welfare, labor protection and a caring and inclusive society.

The nine areas include increasing the supply of public housing, creating land for large development projects, promoting long-term economic development while increasing government land reserves, continuing healthcare reforms, promoting “ageing in place”, and supporting and protecting workers.

“These demonstrate my commitment to placing people's livelihoods at the heart of governance. Indeed, economic development ultimately serves the well-being of our people, enabling them to enjoy a better quality of life,” he added.

Implementing ‘one country, two systems’

Referring to President Xi Jinping’s statement that "one country, two systems" possesses its distinctive institutional strengths and strong vitality and is a good system that sustains the long-term prosperity and stability of Hong Kong and Macao, Lee stressed the need to stay committed to the cause.

“We will continue to fully, faithfully and resolutely implement ‘one country, two systems’, ‘Hong Kong people administering Hong Kong’ and a high degree of autonomy,” he said, adding the "one country, two systems" principle is the best institutional arrangement for maintaining Hong Kong's long-term prosperity and stability.

Being a global metropolis, the SAR has remained an open, inclusive, safe and stable city underpinned by the rule of law since its return to the motherland in 1997, he said.

“With an ever-expanding influence internationally, Hong Kong is rated the world's freest economy, as well as an advanced and business-friendly city. These fully demonstrate the notable institutional strengths and great vitality of ‘one country, two systems’.”

As an international city with its distinctive role of connecting to the rest of the world, Hong Kong also has infinite room for development as it enjoys a solid backing from the motherland, enjoying far-reaching opportunities brought by national development – from the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to the Belt and Road (B&R) Initiative, he added.

Safeguarding national security

Hong Kong has overcome turmoil and unrest, and maintained safety and stability in our society since the implementation of the Hong Kong National Security Law five years ago – transitioning from chaos to order – and is now advancing from stability to prosperity, said the CE.

Stressing his government’s resolve to continue to steadfastly safeguard national sovereignty, security and development interests, he said: “We will remain vigilant at all times, prevent and mitigate risks, and ensure the long-term stability and safety of Hong Kong.”

The SAR government will continue to enhance the legal system and enforcement mechanism for safeguarding national security to prevent, suppress and impose punishment for acts and activities endangering national security, he said.

“The government will spare no effort in promoting national security education,” he said, adding that the National Security Exhibition Gallery has already attracted over one million visitors since its opening a year ago.

More than 3,300 national security education district tutors have been trained to promote national security messages in the community, he added.

‘Patriots administering Hong Kong’

The Hong Kong leader said with an improved electoral system and district governance system, the principle of "patriots administering Hong Kong" has been fully implemented.

Pointing out that the HKSAR government has held six important elections, including the recent Election Committee Subsector By-elections, Lee said: “The HKSAR will devote all efforts in preparing for the general election for the eighth-term Legislative Council to be held on Dec 7 this year, ensuring that the election is conducted in a fair, just, honest, safe and orderly manner."

Patriotic Education

Referring to a series of large-scale commemorative activities organized by the HKSAR government to mark the 80th anniversary of victory in the Chinese People's War of Resistance against Japanese Aggression and in the World Anti-Fascist War, Lee said Hong Kong will collaborate with Shenzhen to promote a new red educational route, under the theme of "Chinese Cultural Celebrity Rescue" history in order to enhance understanding among people of Hong Kong and tourists of the history of the War of Resistance in Hong Kong.

“We will comprehensively review and conduct restoration and protection work on historic sites relating to the participation of the Communist Party of China in the War of Resistance in various districts, with a view to integrating them into tourism routes and educational activities.”

The government will promote patriotic education facilities in the mainland, making them the patriotic education bases of the HKSAR to encourage more students and young people to visit, he said, adding that the government will establish close connection with patriotic groups to unite efforts in organizing more patriotic education activities.

To strengthen students' affection for and sense of belonging to the country, Hong Kong’s Education Bureau will integrate patriotic education into daily learning and teaching, according to the CE.

“We will popularize the ‘Love Our Home, Treasure Our Country’ series of activities, continuously strengthen the Constitution and Basic Law Student Ambassadors Training Scheme, design itineraries for students to experience the founding history of our country, and conduct focus inspections on national education.”

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The CE and his team are set to elaborate on the policies to various media outlets or organizations later.

The designs of the tie and scarf worn by the CE and other officials have been inspired by the Hong Kong-Zhuhai-Macao Bridge, the Tsing Ma Bridge, and the Ting Kau Bridge, symbolizing Hong Kong’s role in bridging the Chinese mainland with the world.

Green has been chosen as the theme color of his blueprint to symbolize vitality and sustainability, and reflect the city’s continuing vibrancy for a “brighter future”.

The Policy Address was drafted after officials had held more than 40 consultations, beginning on June 16, and interacted directly with a broad selection of the community. The government also received 10,100 suggestions through various channels.

This year’s Policy Address comes about a month earlier than the traditional October schedule, with the government to facilitate adequate preparations before the Legislative Council election slated for December.

After assuming office as the sixth-term Chief Executive of the HKSAR on July 1, 2022, Lee delivered his maiden policy address on Oct 19 that year. He delivered his next two policy addresses on Oct 25 and Oct 16 in 2023 and 2024, respectively.