On July 1, in his inaugural address marking the formation of the Hong Kong Special Administrative Region Government, Chief Executive Tung Chee-hwa warned: 'Beneath the surface of prosperity there are insidious threats which are taxing our courage and determination.' He expressed concern over persistently high inflation threatening Hong Kong's competitiveness and social problems caused by a growing ageing population, inadequate housing and employment dislocation due to de-industrialisation.
If his warning sounded too depressing at the time, no one would disagree with him now that Hong Kong is facing challenging times. Over the past six months, the SAR has been hit by speculative attacks on the local currency and the stock and property markets have suffered great slides.
Whereas unemployment used to affect mainly the declining manufacturing industries, it has begun to hit the service sector, with retail workers and real-estate agents being thrown out of work. Lately, even the livelihood of poultry workers has been affected by the slaughter of all chickens in a bid to stop the spread of bird flu.
As Lunar New Year approaches, the mood of the community has changed from being buoyant at the time of the handover to being anxious. Compared with six months ago, most people feel they are poorer and their jobs less secure. Though the SAR Government is not entirely to blame for their misfortune, public anxieties are having an effect on how they perceive the administration's performance.
In the formulation and implementation of public policies, timing is of critical importance. The problem facing Mr Tung is that before his initiatives bear fruit a few years down the road, they will bring short-term anxieties and even suffering, aggravated by the economic slow down.
Mr Tung made good his campaign promise to solve Hong Kong's housing problem by boosting the supply of land and raising the home-ownership rate by privatising public housing.
