Financial Secretary John Tsang Chun-wah's latest budget announcement gained him not only rare praise from pan-democrats but buzz that he might be a dark horse candidate in the 2017 chief executive race. Tsang picked up points with the young pro-democracy crowd following the months-long Occupy sit-ins by addressing them specifically in a paragraph in his annual budget speech. He said Hongkongers' demands went beyond material goods. "The people of this city, our younger generations in particular, are hungering for spiritual contentment. This is what a mature society should manifest … [and] needs to be addressed and dealt with," he said, adding conflicts should be resolved via conversation rather than clashes. Tsang's remarks contrasted with those of Chief Executive Leung Chun-ying in his policy address last month, in which he criticised the University of Hong Kong student magazine for advocating the city's independence. Democratic Party chairwoman Emily Lau Wai-hing agreed with Tsang that more constructive conversations were needed. Information technology lawmaker Charles Mok said the budget was better written than the policy address. "The concluding remarks have shown Tsang has a better understanding of what young people want … it sets a very good example of how to be a chief executive," he said. When asked if there was any difference between himself and Leung on the views of younger generations, Tsang said he "totally respected" Leung's opinion, and that even though their backgrounds were different, "I believe our goal is the same". Tsang, who delivered more than HK$34 billion in economic sweeteners to citizens in this budget, also brushed off suggestions that he was doing so to build up popularity for securing the city's top job in 2017. "If several billions could easily buy people's hearts, [the government] should have already done so," he said. Of the 529 Hongkongers asked by the University of Hong Kong's public opinion programme how satisfied they were with the budget yesterday, 45 per cent answered "quite satisfied" or "very satisfied". Another 18 per cent felt "not quite satisfied" or "very dissatisfied". Asked whether they would vote to reappoint Tsang if they had that right, 58 per cent of 602 respondents said they would. The verdicts Hong Kong's strong fiscal position offsets near-term credit challenges that may emerge due to uncertain global financial conditions and slower GDP growth. The considerable buffers built up over the years provide authorities with the fiscal space to deal with these near-term challenges, while at the same time addressing medium-term issues such as an ageing population and the need to maintain international competitiveness Moody's Investors Service, credit rating agency It takes three to four years to build the flats. New housing supply will stay at a low level in the coming two years and the housing shortage will not be improved significantly until 2017. The policy has limited impact on the property market in the next two years Jones Lang LaSalle managing director Joseph Tsang Hon-ping on the plan to release residential sites capable of providing 19,000 flats The government has failed to utilise the accumulated surplus over the years, and it is perfectly capable of increasing the recurrent expenditure. With the massive savings, the government did not open its safe to help the poor. It will not resolve the problem of the widening wealth gap The Society for Community Organisation The chamber had suggested reducing the profits tax rate from 15 per cent to 10 per cent on the first HK$2 million of taxable income … We appreciate the attention paid to our ideas, but we do not think that such a concession would overly complicate Hong Kong's low and simple tax regime General Chamber of Commerce chairman Pang Yiu-kai When the government considers broadening its revenue and tax net, it should sufficiently consider its impact on the society and the city's long-term competitiveness Chinese Manufacturers Association We look forward to seeing more concrete measures to enhance the competitiveness of our tax system and Hong Kong's ability to attract overseas investment, thereby ensuring Hong Kong's business environment continues to flourish and improving people's living standards Association of Chartered Certified Accountants Hong Kong chairman Fergus Wong We welcome the government's allocation of funding to support more women to take care of their families and work, which will release more manpower to ease labour shortages Hong Kong Retail Management Association We welcome the establishment of treasury centres by proposing interest deduction and reducing profits tax by 50 per cent. The more companies develop their treasury functions in Hong Kong, the more financial services will be generated Hong Kong Association of Banks The budget includes measures to support enterprises and improve the livelihood of the people, and proposes to devote resources to foster the long-term economic and social development of Hong Kong. But we have yet to see any move being taken to formulate an industrial policy to groom local, high-value-added industries, which is important to diversify the city's economic structure and foster sustainable growth Federation of Hong Kong Industries chairman Stanley Lau We have been calling for a comprehensive review of Hong Kong's tax system since 2012. The government now needs to announce an immediate action plan and timeline Loretta Shuen of CPA Australia, Greater China
