My Take | Political play by consummate bureaucrat wins the day

In her maiden policy address, Carrie Lam Cheng Yuet-ngor moved away from the fiscal conservatism of her former election rival John Tsang Chun-wah and reversed some key policies of her predecessor Leung Chun-ying. Instead, she embraced many demands of the opposition and the community over a range of livelihood and quality-of-life issues.

She then acknowledged the government is sitting on more than HK$1 trillion in fiscal reserves and needs to make better use of it. This means, among other initiatives, doubling spending on research and development to 1.5 per cent of GDP from the current 0.7 per cent.

It also means greater commitment to recurrent spending on education, welfare, especially for the elderly and children with special needs, and health care with a focus on an ageing population. There are new jobs to get more young people and minorities involved in government and policymaking.

Meanwhile, Lam will reverse an unpopular plan by Leung to build an extension of the Exhibition and Convention Centre on the Wan Chai Sports Ground. Instead, nearby government buildings will be redeveloped for the purpose. She is also giving up more government sites as one of several key initiatives to find more land for housing. We already know about the Starter Homes scheme to help families get on the home ownership ladder. Those who are qualified may also buy subsidised flats without having to pay a market premium.