Chief Executive John Lee Ka-chiu on Thursday emphasized his proposals to develop high-end, competitive industries in Hong Kong. These initiatives aim to generate new economic momentum and improve livelihoods through the creation of high-earning opportunities.
During a question-and-answer session at the Legislative Council following his fourth Policy Address, which he delivered on Wednesday, Lee addressed lawmakers’ concerns about how the new blueprint will support local workers and mobilize the domestic labor force.
Lee acknowledged Hong Kong’s long-standing dependence on a single-industry economic structure, primarily centered on the services sector. He said that diversifying this industrial landscape will not only stimulate economic growth but also strengthen the job market. Despite low overall unemployment rates in the local market, some sectors face challenges due to structural shifts and ongoing economic volatility.
Official data shows that in 2023, the services sector accounted for about 93.5 percent of the GDP and employed about 88 percent of the workforce. This sector includes traditional strengths such as finance, trade, and professional services, as well as rising industries like IT and tourism; it also involves widespread grassroots jobs in food and beverage and retail. However, growth within the sector has been uneven, with industries like finance and IT expanding, but tourism, retail, and food services continuing to face significant hurdles to recovery.
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The 2025 Policy Address included a dedicated chapter on industry development and reform, pledging to cultivate emerging industries while consolidating traditional strengths such as finance.
Key measures involved preferential policy packages to attract enterprises, including land grants, financial subsidies, and tax incentives. The government also plans to intensify efforts to cultivate these industries locally.
High-value and high-tech sectors, such as life and health technology and the space economy, are prioritized for development. Notably, a new initiative aims to attract aircraft recycling enterprises and train relevant professionals, which is expected to enhance the entire value chain by boosting trade, insurance, financing, and leasing activities.
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Lee said he expects these measures to significantly transform Hong Kong’s overall industrial landscape.
He also addressed concerns regarding his new Heads of Department Accountability System, the importation of labor, the yacht economy, and social welfare.
In his concluding remarks, Lee reiterated that the administration’s governing philosophy prioritizes “the economy and people’s livelihood” as interconnected goals.
He said, “Economic growth improves people’s livelihood; improving people’s livelihood can stimulate new vitality in the market, create more high-quality jobs, and drive wage increases. In turn, the government will increase fiscal revenue, build more infrastructure, and provide more public services.”
The HKCPPCC (Provincial) Members Association, whose members serve on regional committees of the Chinese People’s Political Consultative Conference, the nation’s political advisory body, voiced support for the proposals to foster emerging industries and institutional innovation.
The Policy Address demonstrates the government’s commitment and determination to advancing Hong Kong’s high-quality development, the association said.
Lawmaker Johnny Ng Kit-chong commended the government’s efforts in “identifying the right direction for Hong Kong’s future development”. He said he believes that these measures will propel Hong Kong’s social and economic development to new heights.
Contact the writer at stacyshi@chinadailyhk.com
