The Hong Kong government held a positive outlook for this year's economic growth, with the number of newly registered companies in the city last year hitting a new high despite the economy undergoing a transitional period, Chief Executive John Lee Ka-chiu said on Tuesday.

He made the remarks while speaking to the media ahead of the Executive Council meeting.

“The economy is undergoing a transitional period. New demands and new likings are emerging. There are sectors which do well and some sectors which do not. Some shops are closed, while many are opened.,” he said while replying to a question on the shutdown of Ocean Empire Food Shop, a restaurant chain famed for its Cantonese-style congee.

Lee stressed the number of local companies that are registered in Hong Kong reached 1.46 million by the end of last year, an increase of some 29,000 companies, thanks to the efforts of the Office for Attracting Strategic Enterprises and Invest Hong Kong.

“The Office for Attracting Strategic Enterprises has recruited 84 strategic enterprises, which will bring in direct investments of over HK$50 billion ($6.39 billion). They will also create over 20 000 jobs. Invest Hong Kong has assisted enterprises to set up or expand in Hong Kong, and the figures show an increase of 13 percent compared to the same period last year,” the CE said.

Highlighting that the government maintained its forecast of 2 to 3 percent of economic growth this year, the CE pointed out that the stock market performed well, with an average daily turnover in April of HK$270 billion, a 1.4-fold year-on-year increase.

“There will be ups and downs in different sectors during this transitional period, but overall, we will see positive growth in our GDP this year,” he said, adding that the government is confident about sailing through the transitional period.

Lee urged various sectors to reform themselves to become more competitive.

Taxi services and online ride-hailing

Asked about the city’s taxi and online ride-hailing services, he reiterated the government’s stance that taxi services must be improved. The government’s taxi fleet scheme generating positive feedbacks from passengers, he added.

“We need to crack down on illegal hire car services. The police have arrested more than 30 drivers providing the services,” said the CE.

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Pointing out that online ride hailing needed to be regulated, he highlighted the government’s determination to resolve the long-standing problem and establish a legal framework and mechanism for point-to-point transportation services.

Interactive Q&A session

At the same press briefing, the CE announced that he will hold an interactive question and answer session at the Legislative Council this Thursday on two subjects: deepening global cooperation and speeding up the development of the Northern Metropolis.

Ticket scalping at Kai Tak Sports Park

Asked about scalping of VIP tickets for activities at the Kai Tak Sports Park, Lee said the government must ensure the operations are done in accordance with the terms and conditions, which states that tickets can’t be resold.

The park has been informed by the Culture, Sports and Tourism Bureau of optimizing the procedures to allow residents to have a transparent understanding of how to purchase tickets legally, he added.