Hong Kong leader Carrie Lam hints at government restructuring, new bureaus on land, cultural issues

The overhaul’s supporters have touted the changes as ensuring only “patriots” will govern Hong Kong, but critics have accused them of snuffing out dissent.

“Now that society has returned to stability … and the [

] is more willing to cooperate with the administrative branch, it’s time to be courageous to think about reforms drastically,” Lam said. “The consensus is that there should be bureaus specialising in cultural policies to push for the development of Hong Kong’s culture, and to enhance the coordination of our work on land and housing.”

Beijing in recent months has repeatedly urged the Hong Kong government to solve the city’s long-standing

problems, and the development of a more vibrant local arts and culture scene was called for in the country’s latest five-year plan.

Lam had previously promised a “visionary” policy blueprint this year, sparking speculation she may be considering running for re-election – something she has yet to confirm or deny.

But on Sunday Lam said she would tread cautiously in her address and avoid massive spending, noting that the city’s economy was still slowly recovering from the Covid-19 pandemic.

“Every year when I attend consultations … I hear a lot of concerns about resources. ‘Give us more money in this area, chief executive. How about making certain aspects such as tunnels and transport free?’” Lam said.

“But at the end of the day, the government’s resources are limited,” she continued, adding that there was a need to keep tax low to maintain the city’s competitive edge.

She said her administration had spent hundreds of billions of dollars in recent years, whether on a one-off or recurring basis, to enhance elderly welfare, sports development and technological innovation. As a result, government spending had increased from being equivalent to 20 per cent of the city’s gross domestic product five years ago to being about 27 per cent of GDP now.

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“There just isn’t room for us to raise our expenditures in a massive manner,” Lam said, pointing to last year’s recession.

Setting out her long-term vision, Lam said she intended “to make the pie bigger” by riding on the development of the country at large and by pressing the city’s existing advantages under the “one country, two systems” governing principle, such as its own currency and its common law system.

Lam also brushed off reports of tens of thousands of people leaving Hong Kong amid the changing political climate. Though she acknowledged there was a shortage of talent in certain areas, she said the city had immigration schemes to attract workers from overseas and the mainland. The city was also stepping up its STEM education to produce more home-grown talent in the long run, she added.

She also said her government would soon unveil a joint plan with Shenzhen authorities aimed at attracting overseas talent to an innovation hub being developed by both jurisdictions.

Lam acknowledged a shortage of talent in certain fields, but insisted there were schemes in place to attract workers from overseas. Photo: Bloomberg

Lam acknowledged a shortage of talent in certain fields, but insisted there were schemes in place to attract workers from overseas. Photo: Bloomberg

Lam did not respond to some questions from the audience, including one from the city’s ethnic minority groups about what the government could do to help them better integrate. Nor did she address a call for her to appeal to Beijing to show more understanding for the city’s young anti-government protesters.

And in spite of repeated questions about when the city would reopen the border with mainland China – seen as crucial for boosting the economy – Lam offered little in the way of updates, saying only that she was committed to restarting travel and urging citizens to get vaccinated.

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Lam, who noted she had organised more than 40 consultation sessions this year, said she remained committed to improving the welfare of the elderly and tackling the issue of the city’s ageing population in “an innovative way”, making sure older residents stayed physically and mentally healthy without having to rely on care homes.

She also maintained that any economic development would have to go hand in hand with environmental protection, expressing her disappointment that only one audience member had asked about the issue.

“We recorded 38 degrees [Celsius] yesterday and people were complaining about the heat,” she said, insisting that “development has to be sustainable”.


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