https://www.scmp.com/rss/324061/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com The massive projected [budget] surplus, at least seven times the original estimate of HK$16.3 billion for 2017/18, has reignited criticism of officials’ calculations ... - SCMP, February 12 They say history repeats itself, and I believe it. Here is what the now defunct Far Eastern Economic Review had to say about the Hong Kong budget 50 years ago: “For the first time in living memory, Hongkong’s Financial Secretary admitted that it would be safe to assume that the Colony’s economy might prosper... https://www.scmp.com/business/banking-finance/article/2133473/why-are-hong-kong-bureaucrats-such-misers-when-it-comes?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2133473/why-are-hong-kong-bureaucrats-such-misers-when-it-comes?utm_source=rss_feed Thu, 15 Feb 2018 04:24:43 +0000 Hong Kong’s next budget could be “full of surprises” amid the city’s bright economic outlook, with economic growth set to surpass 3.7 per cent for 2017, the city’s leader has revealed. Carrie Lam Cheng Yuet-ngor also promised to create a “favourable business environment” for local enterprises, citing the introduction of the two-tier tax system and the tax incentives for companies investing in innovation and technology. The chief executive was addressing guests at the inauguration ceremony of the... https://www.scmp.com/news/hong-kong/economy/article/2132629/hong-kong-chief-executive-carrie-lam-says-citys-next-budget?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2132629/hong-kong-chief-executive-carrie-lam-says-citys-next-budget?utm_source=rss_feed Fri, 09 Feb 2018 00:30:30 +0000 Managing public finance in a sophisticated and fast changing economy such as Hong Kong’s is no easy task. Managing public expectations on this front is no less difficult. With his second budget just a few weeks away, Financial Secretary Paul Chan Mo-po must be feeling the heat. On one hand, the government’s windfall surplus will give him more room to manoeuvre but, on the other, expectation has been raised so high that he cannot turn a deaf ear to people’s calls for more goodies. We must... https://www.scmp.com/comment/insight-opinion/article/2128560/balancing-act-appears-cards-hong-kong-budget?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2128560/balancing-act-appears-cards-hong-kong-budget?utm_source=rss_feed Tue, 16 Jan 2018 18:26:02 +0000 A huge surplus expected in Hong Kong’s budget will be invested in the long-term development of the city, with priority given to elderly care, medical services, research and creative industries, the financial secretary revealed on Saturday. Paul Chan Mo-po also ruled out introducing a sales tax to widen the city’s narrow revenue base, saying it would be inappropriate in the current financial and political climate. He promised to consider offering larger tax breaks, issuing more inflation-indexed... https://www.scmp.com/news/hong-kong/economy/article/2128122/we-must-invest-hong-kongs-future-not-dish-out-sweeteners?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2128122/we-must-invest-hong-kongs-future-not-dish-out-sweeteners?utm_source=rss_feed Sat, 13 Jan 2018 09:41:17 +0000 Hong Kong’s finance chief has hinted he would keep splashing money in his upcoming budget in light of a “considerably high” surplus despite the provision in the Basic Law requiring the city to keep the budget commensurate with its GDP growth rate. Paul Chan Mo-po said the Basic Law, Hong Kong’s mini-constitution, should not be viewed too rigidly and that he would seek to invest in the future instead of giving out “sweeteners” that could only “win plaudits in the short term”. In a post on his... https://www.scmp.com/news/hong-kong/economy/article/2127198/more-money-hong-kong-splash-out-considerably-high-hk572?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2127198/more-money-hong-kong-splash-out-considerably-high-hk572?utm_source=rss_feed Sun, 07 Jan 2018 10:30:30 +0000 The Hong Kong government should spend more to drive economic growth and could even go into budget deficit occasionally if the spending was for the public interest, according to Executive Council member Joseph Yam Chi-kwong. “Indeed, with Hong Kong experiencing historically slow economic growth rates in the past decade and a strong desire of everybody to invest in the future of Hong Kong and build a more dynamic economy, the contractionary fiscal stance on the economy after a decade of fiscal... https://www.scmp.com/business/global-economy/article/2105257/hong-kong-government-should-spend-more-boost-economy-says?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2105257/hong-kong-government-should-spend-more-boost-economy-says?utm_source=rss_feed Thu, 03 Aug 2017 05:54:19 +0000 The latest government budget includes an initiative to offer tax breaks so that aircraft financing companies are drawn to use Hong Kong as their business domicile. As Financial Secretary Paul Chan Mo-po said: “Such a concession will attract aircraft leasing companies to develop their business in Hong Kong, thereby creating job opportunities for the financial and aviation industries.” The benefits for Hong Kong in becoming a centre for aviation leasing are obvious and considerable. According to... https://www.scmp.com/comment/insight-opinion/article/2096508/hong-kong-will-gain-if-aviation-leasing-takes-firms-must?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2096508/hong-kong-will-gain-if-aviation-leasing-takes-firms-must?utm_source=rss_feed Thu, 01 Jun 2017 09:21:04 +0000 Our government is one of the richest in the world, thanks to its fiscal discipline. Most of our top officials think it’s a virtue. It’s actually become a vice. You want to know what is wrong with Hong Kong today, follow the money, in this case, public money. The research unit of the Legislative Council has released a nifty study of the history of the government budget since the 1997 handover, right up to the current 2017-2018 budget. One of its conclusions is that what it calls the “fiscal... https://www.scmp.com/comment/insight-opinion/article/2087845/madness-heart-hong-kongs-public-spending?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2087845/madness-heart-hong-kongs-public-spending?utm_source=rss_feed Fri, 14 Apr 2017 17:00:15 +0000 Pan-democratic lawmakers are planning the shortest filibuster on the government budget for five years when they start scrutinising the bill on April 26. But far from showing agreement with spending plans, it reflects their lukewarm response to the last financial blueprint of Leung Chun-ying’s outgoing administration. A total of 745 amendments have been tabled to the Legislative Council, down on the 2,168 last year. Scandal-hit Paul Chan gets a shot at redemption, and even glory, with first... https://www.scmp.com/news/hong-kong/politics/article/2087772/hong-kong-lawmakers-ease-delaying-tactics-budget-bill-gets?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2087772/hong-kong-lawmakers-ease-delaying-tactics-budget-bill-gets?utm_source=rss_feed Fri, 14 Apr 2017 12:21:56 +0000 The Hong Kong government spent less than what the budget allowed each year over a period of two decades on areas such as education, social welfare and housing – the very sectors in need of service boosts – according to a study. In a research brief released on Wednesday, the Legislative Council Secretariat found the government – known for its strong fiscal discipline – had followed a general pattern of spending less than that was budgeted in each year for the past 20 years. The amount averaged at... https://www.scmp.com/news/hong-kong/economy/article/2083451/hong-kong-government-underspent-education-and-housing-past-20?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2083451/hong-kong-government-underspent-education-and-housing-past-20?utm_source=rss_feed Thu, 30 Mar 2017 05:10:22 +0000 The popular underdog in Hong Kong’s leadership election, John Tsang Chun-wah, quit his job as finance minister three months ago because of a row with outgoing chief executive Leung Chun-ying over how much the government should spend, the Post has learned. In a new twist as the three-horse race enters the final three weeks to polling day on March 26, Tsang finally opened up a little more about his rift with his former boss. Tsang had saidon Thursday that he quit not because he wanted to run for... https://www.scmp.com/news/hong-kong/politics/article/2075782/john-tsang-quit-finance-minister-job-after-row-chief?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2075782/john-tsang-quit-finance-minister-job-after-row-chief?utm_source=rss_feed Fri, 03 Mar 2017 06:00:45 +0000 In his maiden budget speech last week, Financial Secretary Paul Chan Mo-po announced a drastic reduction to the waiver on the first-time registration tax for electric private cars, effective almost immediately. He described this as a measure to curb private-car growth for better air quality. The government has waived this tax in full since 1994, in an effort to encourage more people to buy electric cars, thus reducing roadside emissions. The government of that era showed foresight for launching... https://www.scmp.com/comment/insight-opinion/article/2075464/targeting-electric-cars-wont-ease-hong-kongs-traffic-or?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2075464/targeting-electric-cars-wont-ease-hong-kongs-traffic-or?utm_source=rss_feed Thu, 02 Mar 2017 07:38:13 +0000 Taxation is so sensitive an issue the world over that few politicians would make use of an inaugural speech to push for a revamp that may result in people paying more taxes. Financial Secretary Paul Chan Mo-po is therefore to be commended for his courage in broaching the need of a tax review in his maiden budget. We hope it will not become yet another all talk but no action agenda. The last serious debate on broadening the city’s tax base dates back to more than a decade ago, when the government... https://www.scmp.com/comment/insight-opinion/article/2074225/review-our-tax-regime-long-overdue?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2074225/review-our-tax-regime-long-overdue?utm_source=rss_feed Sun, 26 Feb 2017 17:48:30 +0000 It is probably unrealistic to expect anyone in an official position in Hong Kong to listen to reasoned, constructive criticism. After all, this is the city where dozens of former officials line up to plead for leniency when a former government chief executive is convicted of misconduct in office. It is also the city where thousands of police officers assemble to condemn the conviction and sentencing of seven of their colleagues for assault. Think for a moment about the implications of those... https://www.scmp.com/week-asia/opinion/article/2073495/hong-kong-budget-officials-and-cartels-not-ordinary-people?utm_source=rss_feed https://www.scmp.com/week-asia/opinion/article/2073495/hong-kong-budget-officials-and-cartels-not-ordinary-people?utm_source=rss_feed Sun, 26 Feb 2017 04:31:08 +0000 I have a confession to make: I feel kind of sorry for Hong Kong’s new financial secretary Paul Chan Mo-po. On the day of his maiden budget speech, more compelling news took attention away from his speech. He had no chance. But, in a sense, he lucked out because his budget plan failed to make an impression; if anything, it reminded others of his predecessor and chief executive hopeful John Tsang Chun-wah, which to many isn’t a good thing. Chan’s boss and some of his colleagues have been quick to... https://www.scmp.com/comment/insight-opinion/article/2073705/nothing-cheer-hong-kong-its-new-financial-secretary-turns?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2073705/nothing-cheer-hong-kong-its-new-financial-secretary-turns?utm_source=rss_feed Sun, 26 Feb 2017 01:01:09 +0000 The government has been ­accused of targeting electric vehicles and setting Hong Kong back as an environmentally conscious and high tech city, following the ­removal of a tax break this week. Earlier this week, Financial Secretary Paul Chan Mo-po announced that the full waiver of First Registration Tax for e-cars – a measure that has been in place for more than 20 years – would end on March 31, with the tax discount to be capped at HK$97,500. The move was aimed at curbing car growth and... https://www.scmp.com/news/hong-kong/economy/article/2074016/decision-cut-hong-kongs-electric-vehicle-tax-waiver-backwards?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2074016/decision-cut-hong-kongs-electric-vehicle-tax-waiver-backwards?utm_source=rss_feed Sat, 25 Feb 2017 08:20:56 +0000 Philip Bowring Philip Bowring Guilty or otherwise, it is hard not to have a pang of sympathy for former Hong Kong chief executive Donald Tsang Yam-kuen, and wonder how far occult politics played a role in his prosecution. The sums involved were minuscule compared with the implicit corruption in a system which sustains so many government-condoned monopolies and rent-seeking arrangements. Take the crucial issue of land. Would we need reclamation or country park space if the government, not the Heung Yee Kuk, ruled the New... https://www.scmp.com/comment/insight-opinion/article/2073479/small-tight-circle-runs-hong-kong?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2073479/small-tight-circle-runs-hong-kong?utm_source=rss_feed Sat, 25 Feb 2017 02:01:42 +0000 Hong Kong Financial Secretary Paul Chan Mo-po has indicated that waivers for first-time registration tax on electric commercial vehicles may be extended beyond a year. Chan, who was speaking on an English radio phone-in programme on Friday morning, had announced in his maiden budget on Wednesday that waivers on first-time registration tax for electric commercial vehicles would be applied from April 1 to March 31 next year, but discounts given on the tax for electric private cars would be capped... https://www.scmp.com/news/hong-kong/economy/article/2073746/tax-waivers-electric-cars-may-be-extended-beyond-year-says?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073746/tax-waivers-electric-cars-may-be-extended-beyond-year-says?utm_source=rss_feed Fri, 24 Feb 2017 06:34:43 +0000 In delivering the latest budget, new Financial Secretary Paul Chan Mo-po has offered some good soundbites. Whether they will translate into a more tangible budgeting reform is a key question for the next government. But at least Chan has identified the key shortcomings of his predecessor and chief executive candidate John Tsang Chun-wah. He says the government needs to project more accurate revenue forecasts, rethink the accumulation of excess revenue, and make better use of surpluses. While he... https://www.scmp.com/comment/insight-opinion/article/2073526/latest-budget-takes-small-step-right-direction?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2073526/latest-budget-takes-small-step-right-direction?utm_source=rss_feed Thu, 23 Feb 2017 17:00:00 +0000 Almost 20 years after Hong Kong was returned to China, it remains a wealthy and prosperous city. Yet we cannot take for granted that the good times will last forever. They could vanish if we don’t strive to preserve them. There is an old Chinese saying: When rowing against the current, one will be driven backwards if one doesn’t try hard enough to go forward. History is full of examples of the decline of once-great industrial cities and ports. A reason for their decline was their failure to... https://www.scmp.com/comment/insight-opinion/article/2073333/2017-budget-will-keep-hong-kong-focused-future?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2073333/2017-budget-will-keep-hong-kong-focused-future?utm_source=rss_feed Thu, 23 Feb 2017 09:00:15 +0000 Financial Secretary Paul Chan Mo-po defended his maiden budget against a barrage of questions from Hongkongers and lawmakers on Thursday querying the lack of cash handouts, tax allowance increases and waivers of business registration fees. Budget 2017 as it happened: Chan announces HK$92 billion surplus The former accountant attended a radio phone-in programme a day after seeking to be more aggressive than his predecessor, John Tsang Chun-wah, in using public finances. In his first, and perhaps... https://www.scmp.com/news/hong-kong/economy/article/2073351/hong-kongs-finance-chief-paul-chan-defends-his-budgets-lack?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073351/hong-kongs-finance-chief-paul-chan-defends-his-budgets-lack?utm_source=rss_feed Thu, 23 Feb 2017 05:00:30 +0000 For those who expected Paul Chan Mo-po to outdo his predecessor’s largesse, the financial secretary’s maiden budget may not at first glance appear impressive. Compared to those delivered by John Tsang Chun-wah, it may even seem equally conservative, if not more so. The new financial secretary now faces a tough job in selling his first and possibly last budget. Having been in his post for just five weeks, Chan found himself walking a tightrope. He had to address the ever-increasing aspirations of... https://www.scmp.com/comment/insight-opinion/article/2073183/sensible-budget-invests-hong-kongs-future?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2073183/sensible-budget-invests-hong-kongs-future?utm_source=rss_feed Wed, 22 Feb 2017 20:15:30 +0000 Financial Secretary Paul Chan Mo-po has sought to be more aggressive than his predecessor in shaping public finances with his maiden – and perhaps last – budget speech, vowing to review the city’s tax system but retain fiscal prudence. Making a case for change from the previous finance chief, John Tsang Chun-wah, who quit the job in December to run for the city’s leadership, Chan spelled out more proactive moves for taxes, the use of surpluses and land revenue forecasts. The formula for... https://www.scmp.com/news/hong-kong/politics/article/2073119/finance-chief-paul-chan-unveils-aggressive-plan-boost-hong?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2073119/finance-chief-paul-chan-unveils-aggressive-plan-boost-hong?utm_source=rss_feed Wed, 22 Feb 2017 16:15:30 +0000 Financial Secretary Paul Chan Mo-po on Wednesday announced a new policy unit would be established in an effort to review Hong Kong’s tax regime and narrow the city’s tax base. In handing down the 2017-18 budget, Chan revealed his plan to widen the salary tax bands, introduce new rebates and increase ­allowances on the back of an estimated HK$92.8 billion fiscal surplus for the current financial year. He warned, however, the city was vulnerable to volatility in the global economy and financial... https://www.scmp.com/news/hong-kong/economy/article/2073113/hong-kong-financial-secretary-paul-chan-announces-review?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073113/hong-kong-financial-secretary-paul-chan-announces-review?utm_source=rss_feed Wed, 22 Feb 2017 15:30:30 +0000 Financial Secretary Paul Chan Mo-po has promised to earmark two-thirds of the HK$92.8 billion surplus on elderly services as well as sports and innovation, as he seeks to demonstrate that his fiscal philosophy is different from his predecessor, chief executive hopeful John Tsang Chun-wah. The move was seen as a departure from Tsang’s approach of investing part of previous surpluses in a Future Fund. Chan declared that the government “can afford to be more proactive” and invest continuously in... https://www.scmp.com/news/hong-kong/politics/article/2073110/paul-chans-surplus-plan-leaves-hong-kong-analysts-mixed-his?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2073110/paul-chans-surplus-plan-leaves-hong-kong-analysts-mixed-his?utm_source=rss_feed Wed, 22 Feb 2017 15:15:45 +0000 Secondary school students will be given opportunities to explore vocational training at an earlier stage with the government providing subsidies for “taster programmes”, including areas such as science, technology, engineering and mathematics (STEM), 3D printing and food science. Financial Secretary Paul Chan Mo-po announced in his budget on Wednesday that the government would deploy an extra HK$700 million out of the city’s fiscal surplus for the Education Bureau. According to a government... https://www.scmp.com/news/hong-kong/education-community/article/2073095/taster-courses-give-hong-kong-pupils-chance-real?utm_source=rss_feed https://www.scmp.com/news/hong-kong/education-community/article/2073095/taster-courses-give-hong-kong-pupils-chance-real?utm_source=rss_feed Wed, 22 Feb 2017 14:15:30 +0000 HK$30 billion has been set aside to implement the city’s first comprehensive long-term elderly services plan and take extra care of mentally ill people who are often overlooked, according to the budget announcement on Wednesday. But a government source said the administration would not have the chance to use the sum in the remaining four months of its term and that details on how the money is spent would be known after a report on a two-year study on elderly services was finished. “This is a... https://www.scmp.com/news/hong-kong/health-environment/article/2073094/social-welfare-sector-sees-hk30-billion-elderly?utm_source=rss_feed https://www.scmp.com/news/hong-kong/health-environment/article/2073094/social-welfare-sector-sees-hk30-billion-elderly?utm_source=rss_feed Wed, 22 Feb 2017 14:15:15 +0000 Electric car buyers will have to loosen their purse strings after the government drastically reduced the waiver on the first registration tax with immediate effect, a move concern groups said was a blow to the use of clean energy in the city. Financial Secretary Paul Chan Mo-po in his budget speech on Wednesday said discounts given on the tax would be capped at HK$97,500, meaning a buyer of a Tesla Model S would end up ­paying about 80 per cent of the tax payable on the car. Full first-time tax... https://www.scmp.com/news/hong-kong/economy/article/2073085/electric-car-buyers-pay-more-tax-waivers-see-big-reduction?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073085/electric-car-buyers-pay-more-tax-waivers-see-big-reduction?utm_source=rss_feed Wed, 22 Feb 2017 13:45:45 +0000 To expect Financial Secretary Paul Chan, who is just two months into his post, to do something very different from previous budgets of the Hong Kong government is basically unrealistic and unfair. Judging from the 2017-18 budget, Chan has inherited the basic fiscal policies of previous financial secretaries. And to a certain extent, there are many parts in his budget speech that appear to have been copied and pasted from previous budget speeches. For instance, the relief measures – a salaries... https://www.scmp.com/news/hong-kong/politics/article/2073083/why-it-was-unfair-expect-anything-different-paul-chans?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2073083/why-it-was-unfair-expect-anything-different-paul-chans?utm_source=rss_feed Wed, 22 Feb 2017 13:30:00 +0000 There were few surprises in Paul Chan Mo-po’s first budget speech, but this was understandable given the impending change in government leadership. Nonetheless, this should not be viewed as a budget handed down without due consideration. Indeed, the financial secretary took the opportunity to provide a detailed review of the measures and initiatives introduced by the outgoing administration, together with their achievements. In doing so, he provided a stock take of recent government activity... https://www.scmp.com/news/hong-kong/economy/article/2073070/hong-kong-tax-review-vital-overcome-problems-narrow-tax-base?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073070/hong-kong-tax-review-vital-overcome-problems-narrow-tax-base?utm_source=rss_feed Wed, 22 Feb 2017 12:15:00 +0000 As far as budgets for caretaker financial secretaries go, Paul Chan should be applauded for doing a reasonable job in his maiden, albeit possibly last, budget address. He didn’t go mad and try to win popularity points by handing out treats to the public or to business. He tried to be inclusive in giving some taxpayers’ money back to the public. This was a sensible decision because at the end of the day there is only so much any outgoing administration can do. Also, it would have been... https://www.scmp.com/comment/insight-opinion/article/2073065/last-serious-action-hong-kongs-competitiveness-shrinking?utm_source=rss_feed https://www.scmp.com/comment/insight-opinion/article/2073065/last-serious-action-hong-kongs-competitiveness-shrinking?utm_source=rss_feed Wed, 22 Feb 2017 12:15:00 +0000 Infrastructure spending in the coming financial year will edge up to HK$100 billion and care has to be taken to roll out projects evenly to avoid rocking the economy, the financial secretary warned on Wednesday. Delivering his budget speech, Paul Chan Mo-po said capital works expenditure was expected to remain at a “relatively high level” in the next few years. Raising concern about lawmakers’ delaying projects, he said: “I appeal to [Legislative Council] members to stop frustrating... https://www.scmp.com/news/hong-kong/education-community/article/2073064/hk100-billion-earmarked-infrastructure-projects?utm_source=rss_feed https://www.scmp.com/news/hong-kong/education-community/article/2073064/hk100-billion-earmarked-infrastructure-projects?utm_source=rss_feed Wed, 22 Feb 2017 11:30:30 +0000 Hong Kong’s economy grew 1.9 per cent last year – the slowest rate since 2012. But a noted improvement in recent months prompted the government to forecast stronger growth of 2 to 3 per cent this year. Growth picked up from 0.8 per cent in the first quarter to 3.1 per cent in the fourth thanks to a strong recovery in the export sector, Financial Secretary Paul Chan Mo-po said in his maiden budget speech delivered on Wednesday. But analysts questioned whether Chan’s prediction might be too... https://www.scmp.com/news/hong-kong/article/2073062/analysts-cast-doubt-finance-chiefs-hong-kong-economic-growth-forecast?utm_source=rss_feed https://www.scmp.com/news/hong-kong/article/2073062/analysts-cast-doubt-finance-chiefs-hong-kong-economic-growth-forecast?utm_source=rss_feed Wed, 22 Feb 2017 11:15:30 +0000 Hong Kong’s financial secretary has earmarked HK$10 billion for developing information technology amid criticism that the hi-tech sector is lagging far behind others. Delivering his maiden budget speech on Wednesday, Paul Chan Mo-po vowed to continue supporting innovation and technology but gave few new and specific policy initiatives to help the industry. He highlighted financial technology, or fintech, as a key growth area and singled out e-sports as a sector with great potential. Four ways... https://www.scmp.com/news/hong-kong/economy/article/2073059/hk10-billion-earmarked-help-hong-kongs-hi-tech-sector-catch?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073059/hk10-billion-earmarked-help-hong-kongs-hi-tech-sector-catch?utm_source=rss_feed Wed, 22 Feb 2017 11:00:45 +0000 A long-term look at the tax regime Perhaps one of the biggest surprises in Paul Chan Mo-po’s maiden budget speech was his plan to set up a tax policy unit to review the revenue base. The unit, to be placed within the Financial Services and the Treasury Bureau, may look at ways to create new taxes on top of the current major sources – profits and salaries taxes, stamp duty and land sale revenue. Paul Chan’s surplus plan leaves Hong Kong analysts mixed on his fiscal approach The idea has been... https://www.scmp.com/news/hong-kong/politics/article/2073053/hong-kong-finance-chiefs-main-points-glance?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2073053/hong-kong-finance-chiefs-main-points-glance?utm_source=rss_feed Wed, 22 Feb 2017 10:30:45 +0000 “It has also been suggested that the fiscal reserves of over HK$900 billion is just too much...” -- Financial secretary Paul Chan Mo-po, Budget speech It must be a heart-warming experience for a financial secretary to launch a maiden budget speech from the position of a near record fiscal surplus, and absolute record fiscal savings. You can do favours for everyone. And when people then suggest that fiscal reserves of more than HK$900 billion are just too much, you can say, “You’re right. Let’s... https://www.scmp.com/business/article/2073044/financial-secretary-character-miser-citys-cash-hoard?utm_source=rss_feed https://www.scmp.com/business/article/2073044/financial-secretary-character-miser-citys-cash-hoard?utm_source=rss_feed Wed, 22 Feb 2017 10:00:45 +0000 A finance expert has called the latest budget’s allocation for social welfare and sports a more “generous” move than before. The comments came as Financial Secretary Paul Chan Mo-po revealed his first budget on Wednesday morning in the Legislative Council, after taking the position last month. Chan forecast a surplus of HK$92.8 billion in the current fiscal year, with HK$61 billion of the amount earmarked to support four areas of development, given the “higher-than-expected surplus”. The four... https://www.scmp.com/news/hong-kong/article/2073039/allocation-hong-kong-surplus-social-welfare-sports-more-generous-says?utm_source=rss_feed https://www.scmp.com/news/hong-kong/article/2073039/allocation-hong-kong-surplus-social-welfare-sports-more-generous-says?utm_source=rss_feed Wed, 22 Feb 2017 09:30:30 +0000 Hong Kong’s economy grew by just 1.9 per cent in 2016 despite 3.1 per cent growth in the fourth quarter, Financial Secretary Paul Chan Mo-po said in his maiden budget on Wednesday. Chan attributed the modest growth mainly to the impact of the grim global economic situation on Hong Kong’s trade performance, particularly in early 2016. The figure was near the upper end of the projection by his predecessor, John Tsang Chun-wah, whose forecast in last year’s budget speech was between 1 per cent and... https://www.scmp.com/news/hong-kong/politics/article/2073024/hong-kong-economy-grew-19-cent-2016-finance-chief-reveals?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2073024/hong-kong-economy-grew-19-cent-2016-finance-chief-reveals?utm_source=rss_feed Wed, 22 Feb 2017 08:30:30 +0000 Infrastructure spending in the coming year will edge up to HK$100 billion and care has to be taken to roll out projects evenly to avoid rocking the economy, the financial secretary warned on Wednesday. Delivering his budget speech, Paul Chan Mo-po said capital works expenditure was expected to remain at a “relatively high level” in the next few years. Raising concern about lawmakers’ delaying projects, he said: “I appeal to [Legislative Council] members to stop frustrating deliberations on... https://www.scmp.com/news/hong-kong/politics/article/2073017/appeal-even-spread-infrastructure-work-spending-tops-hk100?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2073017/appeal-even-spread-infrastructure-work-spending-tops-hk100?utm_source=rss_feed Wed, 22 Feb 2017 08:30:30 +0000 In a bid to review Hong Kong’s tax regime and narrow tax base, Financial Secretary Paul Chan Mo-po announced on Wednesday his plan to establish a new tax policy unit as he rolled out tax rebates and raised tax allowances on the back of an estimated HK$92.8 billion fiscal surplus. “We cannot propose a tax cut which erodes our revenue base,” he said. “Neither can we adjust our tax rates frequently as this would affect the predictability of our tax regime and dent investor confidence. We have to... https://www.scmp.com/news/hong-kong/economy/article/2073007/budget-2017-financial-secretary-announces-salaries-tax-cut?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2073007/budget-2017-financial-secretary-announces-salaries-tax-cut?utm_source=rss_feed Wed, 22 Feb 2017 07:45:00 +0000 Newly appointed financial secretary Paul Chan Mo-po has given his maiden budget announcement – the last one under Chief Executive Leung Chun-ying’s administration. Follow the latest updates and read about how the speech unfolded – including one legislator being kicked out of the chamber – below: 2.08 – Democratic Party adds criticism The Democratic Party is also disappointed with Chan’s maiden budget. Chairman Wu Chi-wai says: “The government’s surplus is larger than last year’s, but Paul Chan... https://www.scmp.com/news/hong-kong/economy/article/2072924/hong-kong-budget-2017-live-coverage-paul-chans-maiden?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2072924/hong-kong-budget-2017-live-coverage-paul-chans-maiden?utm_source=rss_feed Wed, 22 Feb 2017 03:00:15 +0000 Financial Secretary Paul Chan Mo-po is expected to waive licence fees for travel agencies, hotels and restaurants and grant extra funding for Hong Kong’s tourism promotion body when he delivers his first budget on Wednesday. The measures are expected to cushion the persisting downturn affecting the sector, with the Tourism Board predicting visitor arrivals will drop 2.2 per cent this year. They are among a package of incentives to be unveiled by the new financial chief in the budget, including a... https://www.scmp.com/news/hong-kong/economy/article/2072755/help-hong-kong-tourism-way-paul-chans-first-budget?utm_source=rss_feed https://www.scmp.com/news/hong-kong/economy/article/2072755/help-hong-kong-tourism-way-paul-chans-first-budget?utm_source=rss_feed Tue, 21 Feb 2017 15:45:30 +0000 A sunset budget for CY Leung’s administration Paul Chan Mo-po will on Wednesday hand down the last budget for the administration of Chief Executive Leung Chun-ying, whose term expires in June. But at the same time, its validity will last through to the end of the financial year next March – nine months after the new chief executive has stepped into the job. All eyes will be on how Leung’s administration strikes a balance between retaining its legacy on housing development and social welfare, and... https://www.scmp.com/news/hong-kong/politics/article/2072690/banking-change-five-things-consider-ahead-paul-chans-maiden?utm_source=rss_feed https://www.scmp.com/news/hong-kong/politics/article/2072690/banking-change-five-things-consider-ahead-paul-chans-maiden?utm_source=rss_feed Tue, 21 Feb 2017 10:45:45 +0000