After years of impasse, the government has moved to get the West Kowloon Cultural District development ball rolling by modifying the single-developer model.

Following years of speculation about the departure of Secretary for Justice Elsie Leung Oi-sie, the administration is poised to unveil a pleasant surprise with the appointment of a young successor. Meanwhile, the government has moved to explore room for change on a number of long-standing public policies, including competition, the minimum wage and maximum working hours.

Frustrated by the dismal leadership of Mr Tung, ordinary people could breathe a sigh of relief over the return of the city's helm to capable hands.

Despite that background, the public has not been anticipating Mr Tsang's policy address with any great sense of urgency. People do not seem to think that any particular problems are in need of immediate government action.

As confidence gradually recovers, the government has been careful not to inflate expectations, either. Quite the contrary, Mr Tsang has stuck to the pledges made in his campaign. Taking his cue from the Beijing leadership's approach to governance, Mr Tsang stresses the so-called 'three pursuits': the pursuit of stability, harmony and development - in that order.

The chief executive may opt for a steady-as-it-goes approach, to keep the positive momentum going. This may satisfy the many who are still doubtful about the calibre and wisdom of the Tsang administration.

Given a choice of leadership, they may prefer betting on veteran civil servants who are good at execution but poor on visionary plans, rather than on inexperienced politicians who are long on ideas but short on delivery. The prevalence of a feeling of 'so far, so good' in the post-Tung era, however, may blind the government and society at large to the challenges arising from the rapid changes in the external environment.

Speaking at a meeting with legislators in Guangzhou last month, Guangdong party chief Zhang Dejiang sounded a note of alarm over the province's prospects for development in the services sector, which will affect Hong Kong profoundly.

Separately, People's Bank of China governor Zhou Xiaochuan cited challenges to the city's key role as a financial hub, during a visit here. Society faces a worrying list of chronic issues including health-care financing, poverty and family problems linked to economic restructuring, and an ageing population.

These are no small challenges that the city can afford to ignore. Rather, they are areas where Mr Tsang can show leadership qualities by identifying the problems, finding solutions and getting things done with the people's backing.

Chris Yeung is the Post's editor-at-large