
Hong Kong Chief Executive John Lee Ka-chiu has had a very busy first six months in office during which he has performed pretty well. But alas, there can be no rest for him over Christmas as his 2023 plate already looks quite full, even assuming no unforeseen emergencies. Here are some New Year’s resolutions to help him navigate the stormy waters.
Number one, stay laser-focused on the economy. The government has exciting plans to address our many areas of social need, in particular housing and an ageing population. There are also imaginative proposals for the long-term development of our economy.
These will bring great benefits but also incur considerable costs in the short term. Such matters will be more easily handled by a growing economy whereas ours is in a recession likely to run into early next year. We urgently need a quick turnaround.
Number two, ensure all decisions on Covid-19 control measures are taken in full context, not solely on the requirements of combating a single disease. Protecting public health is an important priority but not the only one.
Other considerations need to be brought to bear, not just of the economy but also community morale and the educational and social development of our children. After three years of stringent social controls, and high levels of immunity achieved by vaccination, more weight should be given to these other factors.
Guarding against possible deaths from Covid-19 needs to be balanced against increases in suicides, particularly among the young, or failure to treat other diseases.
Lee has established a good record of easing up in this area (scrapping quarantine and use of “Leave Home Safe”, for example) but needs to maintain momentum and increase it wherever possible.
Number three, maintain the strength of our public finances. Our historical fiscal surpluses distinguish Hong Kong from governments elsewhere. They had to run up huge debts coping with the pandemic while we drew on our savings.
But the previous chief executive threw money around like a drunken sailor on shore leave (two cash handouts with no accompanying vaccination requirement, lowering the qualifying age for the concessionary HK$2 public transport fare to 60, and so on) in a vain attempt to boost popularity, so the reserves are reduced.
There is bound to be pressure for more relief measures next year but against declining tax revenues. Financial Secretary Paul Chan Mo-po will have a tough time getting the balance right in his next budget and needs the full support of the chief executive and other ministers.
Mischief makers seeking to attack China by undermining Hong Kong from time to time try to break our currency’s peg to the US dollar. They will see any weakness in our management of public finances as an opportunity for more speculation.
Financial Secretary Paul Chan Mo-po attends the Global Financial Leaders’ Investment Summit in Hong Kong on November 2.