Hong Kong: Chief Executive John Lee addressed citizens on Wednesday with pledges to reinvigorate Hong Kong’s economic engine, improve living standards, and reinforce the city’s status as an international hub. In his fourth policy address since taking office, Lee introduced a suite of measures aimed at navigating economic headwinds, lifting people’s livelihoods, and deepening integration with broader regional development.
Lee emphasized that improving the quality of life for Hong Kongers is not just a policy target but his “ultimate objective.” He pointed to better housing, higher incomes for workers, enhanced care for the elderly, and more opportunities for young people as pillars of his plan. While some new initiatives were modest, the speech underscored the government’s priority: addressing economic anxiety and ensuring citizens feel the benefits of governance.
Hong Kong’s economic forecast remains in the range of 2% to 3% growth in 2025, a projection Lee reaffirmed, even as the city grapples with China’s broader economic slowdown, weakened consumer demand, and the property sector’s ongoing problems.
Among the more concrete proposals, Lee announced the creation of an international gold trading market, expansion in fintech, and boosting green and sustainable finance. He also intends to enhance Hong Kong’s aviation industry through recycling and trading of high-value aircraft parts, and by developing supply chains for sustainable aviation fuel.
Another strategic focus is positioning Hong Kong as a clinical hub: the government plans to expand the presence of pharmaceutical firms, particularly in clinical trials and treatments for rare diseases and advanced cancer therapies.
Lee reiterated plans to accelerate development in the Northern Metropolis a major new growth area near the border with Shenzhen aimed at housing around 2.5 million people. This project is central to his vision of creating fresh business districts and strengthening connections with the Greater Bay Area, the regional economic cluster spanning Hong Kong, Macau, and parts of Guangdong Province.
To raise Hong Kong’s international educational appeal, an important reform is increasing “non-funded” (fee-paying) seats for non-local students from 40% to 50% in local schools a move seen as both a revenue measure and a way to draw in talent and cultural exchange.
While the policy address outlined many aspirations, it was also noted for having fewer blockbuster housing initiatives than some had hoped. Many of the details, particularly around social housing, were not new and require follow-through to have concrete impact.
Lee’s speech comes at a time when Hong Kong’s economy remains exposed to external pressures notably trade frictions between China and the U.S., as well as lower domestic spending and a sluggish property market. There is also a growing emphasis from Beijing on reviving flagging growth and reinforcing Hong Kong’s role as a vital node in China’s global ambitions.
What to Watch
Whether Hong Kong delivery on housing reforms and alleviation of property sector stress
How the new gold market, aviation and pharma-industry plans materialize in the face of tight global competition
Impacts of raising non-local student quotas on education quality, local sentiment, and school capacity
The pace of development of the Northern Metropolis and how it integrates with transport, infrastructure, and Mainland‐China flows
Lee’s address attempted to balance ambition with reassurance: offering hope for ordinary citizens, especially those feeling squeezed by economic uncertainty, while signaling Hong Kong’s renewed urgency to remain globally competitive. Whether the promised measures will translate into meaningful change remains to be seen but the message from the leadership is clear: enhancing livelihoods and reinforcing Hong Kong’s role on the world stage are front and center.