July 2, 2024
HONG KONG – Hong Kong will now focus on improving its economy after having enhanced its stability, Chief Executive John Lee said on July 1 as he marked the 27th anniversary of the city’s return to China and the start of his third year in office.
“Over the past two years, the government has worked to further improve governance, continued to create strong impetus for growth, earnestly addressed the concerns of the people of Hong Kong, and united efforts in safeguarding harmony and stability,” Mr Lee said.
“Going forward, the government will make every endeavour to pursue economic growth, advance development and improve the livelihood of the people of Hong Kong.”
Mr Lee’s remarks signal a shift in his administration’s top priority from ensuring national security to advancing the city’s economic development.
His speech, delivered at a morning reception following the annual flag-raising ceremony to commemorate the handover at the Convention and Exhibition Centre in Wan Chai, contrasted with his previous July 1 speeches, in which he stressed the importance of safeguarding national security.
The leader made four mentions of the term in his speech when he took office in 2022, and devoted a segment of his speech to the topic in 2023. There was no direct mention of national security in his speech in 2024.
He did, however, list safeguarding national security as being among his major achievements in an article published on the government’s website on the same day.
Mr Lee is said to have prioritised national security in his first two years in office, following social unrest in 2019 that led to Beijing’s 2020 imposition of a national security law on Hong Kong.
Under his leadership, Hong Kong in March finally enacted its own security legislation, 20 years after a previous bid to do so was shelved by mass protests.
On the fourth anniversary of the 2020 law imposed by Beijing on June 30, Mr Lee said Hong Kong was now sufficiently safe and stable, rendering it the “best time ever for development”.
His words aligned with those of Financial Secretary Paul Chan, who on a radio programme on the same day said it was now time for Hong Kong to step out of its defensive stance, going beyond safeguarding its financial security to boosting the economy.
In his speech on July 1, Mr Lee pledged to attach “great importance to housing issues” and work towards shortening the wait time for public housing from the current six years to about 4½ years by 2026 or 2027.
The scrapping of all property cooling measures in February had also reinvigorated the housing market, he added.
On the international front, the Chief Executive said, Hong Kong will strengthen its regional collaborations, targeting markets such as Asean and the Middle East, creating new opportunities for business.
“We should have the big picture in mind… dealing with issues from the perspective of the overall development of the country and the world. We must continue to adopt innovative thinking, bottom-line thinking and a result-oriented approach,” he said.
Mr Gary Ng, a senior economist at investment banking firm Natixis, said Hong Kong’s most immediate task should be to regain the confidence of the international community and the city’s middle class.
“The government must communicate better with businesses and be more friendly to foreign governments, moving away from its very counter-intuitive responses so far,” Mr Ng said, referring to the authorities’ regular rebuttals of criticism levelled against them.
“It will need fewer slogans and more real actions to convince the world that it has moved on and is an economic city.”
Economist Simon Lee, from The Chinese University of Hong Kong, said he hoped the different government departments would work together “in a coordinated manner” to achieve the Chief Executive’s goal.
The relevant authorities could aim to give the media more reasons to highlight the city’s economic developments rather than its law enforcement actions, as has been the case in recent years, he suggested.
Meanwhile, the Chief Executive revealed that Beijing would in the coming months send a pair of giant pandas to Hong Kong to mark the handover anniversary.
The pair would be the fifth and sixth giant pandas to live in Hong Kong, local broadcaster RTHK reported.
Separately, Beijing on July 1 announced that Hong Kong permanent residents who are not Chinese nationals would from July 10 be allowed to apply for five-year permits to enter mainland China more conveniently.
Permit holders would no longer require visas and can use the self-service express lanes to clear Hong Kong’s border checkpoints into the mainland.
Their stay is limited to 90 days, and they will not be allowed to study, work or engage in activities such as newsgathering there.
The move lowers the barriers to encourage foreign firms and professionals to settle in the city, local media reported.
“This measure is not limited to any nationality or industry, which fully highlights Hong Kong’s unique status under ‘one country, two systems’ and greatly helps Hong Kong maintain its international character and diversity,” Mr Lee said in a statement.