China News Service, Hong Kong, February 28 (Reporter Wei Huadu) The Financial Secretary of the Hong Kong Special Administrative Region Government, Paul Chan Mo-po, announced the 2024-2025 fiscal year budget of the Special Administrative Region Government in the Legislative Council on the 28th, focusing on expanding economic capacity and enhancing development momentum.
Last year, Hong Kong's economy recorded positive growth of 3.2%.
Chan Mo-po predicted that the external environment this year will still be complex, putting pressure on exports, but factors such as expectations of U.S. interest rate cuts, the continued recovery of tourism and the continued shift of the global economic center of gravity to the east will help Hong Kong's economic growth by 2.5% to 3.5%.
In this regard, Chen Maobo proposed a number of measures to attract funds, enterprises and talents in the budget.
Among them, Hong Kong Investment Management Co., Ltd. will play a capital guiding role and leverage market resources to attract more innovative technology companies to settle in Hong Kong and accelerate the development of key industries. In the first half of this year, the first batch of direct investment and co-investment projects will be implemented, covering life technology, Green technology and finance, semiconductors, chips, manufacturing upgrading and transformation and other fields; continue to attract European and American funds and explore new sources of funds, such as the Middle East.
"Promoting high-quality development will help stimulate continued economic innovation and growth, with a green future and digitalization being the two main lines." Chen Maobo said that a green and sustainable financial technology proof-of-concept test funding program and a solar power building pilot program will be launched to promote enterprises Develop new green financial technologies and create “green airports”.
In addition, promote the cross-border flow of data and expand the scope of digital renminbi pilot projects to develop the digital economy.
Chen Maobo said that a 10 billion yuan (HKD, the same below) new industrial acceleration plan will be launched this year to provide funding for companies engaged in life and health technology, artificial intelligence and data science, advanced manufacturing and new energy technology, and is expected to attract 50 to 100 people. Enterprises have invested no less than NT$20 billion in Hong Kong.
In terms of promoting the event economy, Paul Chan proposed that Hong Kong should take advantage of the opportunities of industrial development to build a brand as a preferred destination for business and tourism.
Among them, fireworks and drone shows are held every month in Victoria Harbor, and more than 80 events of different themes and types will be held in the first half of this year.
Taking into account that some industries and citizens are still facing economic pressure, Paul Chan proposed a series of tax reduction measures, including a 100% reduction in salaries tax, personal income tax and profits tax for the tax year 2023 to 2024, with an upper limit of NT$3,000. 2.06 million taxpayers and 160,000 enterprises in Hong Kong have benefited.
Chan Mo-po announced that all residential property demand management measures will be lifted with immediate effect to add favorable conditions for local economic recovery and respond to the demands of the industry.
In recent years, the SAR government's financial reserves have declined. Chen Maobo predicts that the comprehensive deficit will be 101.6 billion yuan from 2023 to 2024. He proposed a fiscal consolidation strategy to gradually narrow the fiscal deficit and restore balance of payments.
Among them, the SAR government plans to issue bonds of about 95 billion to 135 billion yuan each year in the next five years to use market funds to promote northern metropolitan areas and other infrastructure projects.
In his conclusion, Chan Mo-po said that Hong Kong's development path in the past few decades has had its ups and downs, but it has always led to a bright future.
"As long as we find the right position, find the right direction, give full play to our unique advantages, continue to innovate and move forward firmly, Hong Kong will surely prosper and prosper." (End)