CE highlights key policy initiatives

October 27, 2023

Voiceover: 

Chief Executive John Lee attended a radio phone-in programme this morning and listened to citizens’ comments on the 2023 Policy Address.

During which, he sought to explain the reasons behind the decision to reduce the stamp duty on stock transfer from the current 0.13% to 0.1% and cut the New Residential Stamp Duty to 7.5%.

Mr Lee said such policies are in response to the competition among other financial markets and as a result of high interest rates.

Chief Executive John Lee:

We will receive less tax, but we will see more transactions, hopefully, and the liquidity will increase, which will in turn make more stamp duty to be paid as a result of a larger volume of transaction.

We have to monitor the situation (after the implementation of such policies), but already, some experts in the market have indicated that if we do not do it now, the situation will probably become even worse because the global environment is not looking good.

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He stated that there is no intention to broaden the tax base at this moment and the Government wants to increase economic activities so that businesses can make money and pay more profit tax in return to increase government revenue.

On the topic of measures to attract talent, such as the stamp duty suspension for incoming people who wish to purchase residential properties, the Chief Executive said the goal behind the move is to ensure Hong Kong remains competitive.

Chief Executive John Lee:

I think all countries and all places are trying to grab talent, particularly (in) I&T (innovation and technology), in areas where the whole world is heading towards, such as green energy. 

We are in strong competition with a lot of places to get the best people. If the best people do not get on my boat, (they) will get on the other people’s boats. And as we sail, that boat will sail faster than ours.

Voiceover:

He added that Hong Kong must capitalise on the unique China advantage brought by state policies along with its international advantage of attracting people from both East and West.

(To watch the full programme with sign language interpretation, click here.)

Chief Executive John Lee today responded to questions on attracting talent to Hong Kong and protecting the city’s environment during a radio programme aimed at answering enquiries from the public about the 2023 Policy Address.

Mr Lee was asked what measures in the Policy Address will improve the city’s competitiveness in the international labour market.

He pointed out that the measures on attracting talent are designed to keep Hong Kong more competitive in areas such as innovation and technology and green energy.

“We are in strong competition with a lot of places to get the best people. If the best people don’t get on my boat, they will get on the other people’s boat and as we sail, that boat will sail faster than ours.

“So that is why I am very determined to ensure that we remain very competitive by attracting as many talents as possible to Hong Kong.”

He added that having such talent will make Hong Kong a more competitive and stronger international city.

“The Policy Address laid out different areas. For example, I am going to develop Hong Kong into an international higher education hub. That, of course, will benefit Hong Kong students. We will put in more resources where it will attract overseas students, particularly a lot from Belt & Road countries.

“This will widen the students of Hong Kong’s horizon. We will learn more about overseas experiences, culture, and how we can interact with people. These are all very important strengths for Hong Kong students to develop to be able to really compete around the world.”

Mr Lee sought to explain why the Government would suspend the need for incoming talent to pay stamp duty if they wish to purchase property in Hong Kong.

“So some tax incentives are put in place with the hope that such talent will settle down in Hong Kong, thereby creating an environment that they would like to stay in Hong Kong.

“So I will suspend the payment of (stamp duty) tax until he or she becomes a Hong Kong citizen.”

When asked if the main focus will be on attracting talent from Belt & Road countries, Mr Lee explained that the Government is open to attracting talent from all over the world and will use the Top Talent Pass Scheme to do just that.

“For the Top Talent Pass (Scheme), we look at the top 100 universities, based on some international ranking systems.

“If you graduate from them, then you will get permission to come to Hong Kong and that is open to the world.”

The main idea, he emphasised, is to obtain the finest talent possible for the benefit of Hong Kong.

The Chief Executive was also asked about the latest policies concerning recycling and decarbonisation with the aim of protecting the city’s environment.

He said one of the action items in the Policy Address is designed to make people responsible for the waste they produce.

As an example, when people purchase products contained in plastic material, he said both the buyer and the company that sells such items will be responsible for recycling the material.

“So that is a way, first of all, to encourage less use of such products. The other purpose is to ensure that they will have to pay for what is required for recycling that product.”

Dealing with kitchen waste is also a goal of the Government which aims to encourage people not to waste food. However, if food is left uneaten, residents should recycle it, Mr Lee stated.

In addition to introducing food recycling receptacles at selected public housing estates, the Government’s plans to ensure all buildings will be equipped with such receptacles.

“The collected waste will be taken to a facility where we will recycle it by making it be a material for green power generation.”

Rolling out such green measures, he insists, will help with producing electricity, plus the recycled matter can be used for other purposes.

The Chief Executive pointed out that another Policy Address initiative is to reduce carbonisation by commercial buildings and facilities such as hospitals.

“Our goal remains to be carbon neutral by 2050 and by 2035, no fuel-generated vehicles will be allowed to be registered. So we are making progress towards that goal.”