Hong Kong posts US$7.5 billion budget surplus in 2018-19
Despite major changes in the global political and economic landscape, a complicated and volatile external environment and heightened uncertainties, Hong Kong managed to achieve a surplus of HK$58.7 billion (US$7.5 billion) in fiscal year 2018-19. GDP growth was at a strong 3 percent in 2018, whilst growth of 2 to 3 percent is forecast for 2019.
In the Government’s latest Budget for the 2019-20 fiscal year, the Financial Secretary, Mr Paul Chan, highlighted new resources of about HK$150 billion for supporting enterprises, safeguarding jobs, stabilising the economy and strengthening livelihoods. Hong Kong's innovation and technology sector received a massive boost from the new Budget, with more than HK$44 billion (US$5.6 billion) earmarked for the sector. Substantial sums were allocated to develop healthcare services, financial services, arts and culture, professional services, creative industries, smart city, tourism and sports.
On the topic of innovation and technology, the Financial Secretary reaffirmed the Budget was designed to help diversify Hong Kong’s economy. To name a few highlights, Mr Chan earmarked HK$5.5 billion for the development of the Cyberport 5 expansion project, which is expected to provide about 66 000 square metres of floor area, including offices, co-working space, conference venues and data service platforms. This will provide strong support for Cyberport, Hong Kong’s creative digital community space with a cluster of technology and digital content tenants. Mr Chan further proposed allocating not less than HK$800 million over the next five years to support applied research and development (R&D) work in designated universities, key laboratories and research centres. Besides, he set aside HK$16 billion for University Grants Committee-funded universities to enhance or refurbish campus facilities, including the provision of additional facilities essential for R&D activities.
At the same time, the Government will keep creating a caring and high-quality living environment. “The estimated public housing production for the next five years is about 100 400 units”, Mr Chan said. Over the same period, the private sector, on average, will complete about 18 800 residential units annually, an increase of about 20 percent over the past five years. In the health sector, HK$10 billion will be earmarked for a public healthcare stabilisation fund for any unexpected circumstances; HK$1.2 billion are designated to establish the Hong Kong Genome Institute and take forward the project to help promote the clinical application of genomic medicine and related innovative scientific research; and to help meet the demand for welfare facilities in urban areas, Mr Chan set aside HK$20 billion for the purchase of 60 properties. These will accommodate more than 130 welfare facilities, including day child care centres, neighbourhood elderly centres and on-site pre-school rehabilitation services.
Nowadays, an improved living environment goes hand in hand with technological advancement. To round out the Government’s overall strategy, Mr Chan reserved HK$300 million to develop a geospatial data-sharing platform and 3D digital maps of Hong Kong, promoting smart city development. To encourage the use of electric vehicles (EVs), the Government will explore ways to encourage the installation of EV charging facilities at car parks in existing buildings. The Financial Secretary said “I will allocate HK$120 million to extend the public EV charging networks at government car parks.” Over 1 000 additional public chargers are expected to be in place by 2022, bringing the total number of chargers to 1 700.
When referring to the volatile external environment and heightened uncertainties in the world economy, the Financial Secretary gave a positive note: “Hard-working and flexible, Hong Kong people have weathered tough times and grown tougher. With confidence, hope and concerted efforts, we will definitely be able to see the sunshine through the clouds!”