Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Sunday, Jul 14, 2024

'$7tn black hole' fear over islands

'$7tn black hole' fear over islands

Issuing bonds to fund the construction of the Kau Yi Chau artificial islands could create a financial “black hole” of HK$7 trillion debt, an economist said yesterday.
That came as part of Greenpeace’s call for the project to be fully scrapped and the priority be placed instead on brownfield development in the New Territories.

Andy Kwan Cheuk-chiu, director at ACE Centre for Business and Economic Research, said Hong Kong’s aging population and ongoing exodus would continue to undermine the islands’ economic output, which the government expects to reach HK$200 billion per year.

“The Development Bureau has repeatedly stressed during the public consultation that the discussion should focus on how the government can ‘do it right’ rather than whether it should do it at all,” said Greenpeace senior campaigner Chan Hall-sion.

Citing Census and Statistics Department data, which recorded a 26,000 drop in the workforce since January 2019, Kwan estimates that the labor force would continue to decline until 2069, in part due to an ongoing exodus and a rapidly growing proportion of residents aged 65 and over that made up 21.3 percent of the population in 2022.

Further instability, he added, could affect the linked exchange rate system, pushing the government into a “black hole” of structural deficit.

Asked whether the government’s talent recruitment would help bring in high-quality labor, Kwan said the government faces strong competition in its drive to “snatch” 35,000 talents every three years. “Our government faces competition from other places, including Singapore and the United States.”

He said the government could see itself in HK$7 trillion debt, even if it issues bonds worth HK$65 billion every year to finance the HK$580 billion Lantau Tomorrow project over a 10-year period.

He estimates an average annual economic growth of 2.6 to 2.9 percent from 2024 to 2027, significantly lower than the 3.7 percent projected in the budget.

Chan called for focus on 433 hectares of accessible brownfield plots, which are designated for the Northern Metropolis scheme, but are excluded from development plans.

She added that 100 hectares are idle sites near new developments, meaning they can be developed at a relatively low cost, with no extra transport infrastructure.

Related Articles

Hong Kong News
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.