MR CHAN KIN-POR (in Cantonese): President, I think the Budget this year can take care of the needs in various aspects. It has taken into account helping small and medium enterprises (SMEs), supporting the tourism industry, developing healthcare services and taking care of the middle class and the disadvantaged. Although the measures proposed may not be sufficient, it has nonetheless responded to many of society’s aspirations. Meanwhile, the Financial Secretary has also proposed many measures to promote the development of innovative technologies. I consider this the path which Hong Kong must take. As Hong Kong has to shoulder massive social expenditure, it is necessary for us to open up new income sources. If we only know how to spend and do not know how to make money, Hong Kong will “dry up” one day.
The Hong Kong economy is facing a substantial downward risk this year. At present, the performance of external trade, retail sales and the tourism industry is very weak. Coupled with the drop in the property market, it is estimated that it will be increasingly difficult to do business in the latter half of the year, and there is a worry that the unemployment rate will also rise. Therefore, I have called on the Financial Secretary to have precautionary measures in place.
The Budget has proposed a series of measures, targeting the SMEs and the tourism industry in particular. However, economic data released at present all reflect that the economy has reached a very precarious state. In February, retail sales value, inbound visitor numbers and import and export value have seen alarming decreases. In face of such miserable environment, the precautionary measures in the Budget may have become insufficient. I wish that the Financial Secretary can pay close attention to the development and has on hand ready emergency easing measures, including the enhancement of support for the SMEs. Currently, the SMEs have already bore the brunt. Many are finding it hard to operate or are even folding. I believe the unemployment rate will rise very soon and many social problems will also surface.
Thus, it is imperative for the Government to get prepared. It should not make belated and desperate attempts. I wish that colleagues of this Council (regardless of their parties) should also have a clear understanding of the present situation. Once Hong Kong is economically hit, we have to help the SMEs and the unemployed to tide over the storm and reinvigorate Hong Kong’s economy.
Furthermore, I would also like to discuss the development of innovative technologies. I have always supported their development. With the establishment of the Innovation and Technology Bureau, the Budget has also pushed vigorously for development in this regard. This indicates the strong determination of the Government to develop innovative technologies.
In recent years, the neighbouring Pearl River Delta Region has developed into a manufacturing hub of advanced technology products. Hong Kong has lagged behind for years in this regard. We should do our best to catch up. Actually, Hong Kong is already equipped with world-class information technology facilities. If we can enhance the development of scientific research talent and institutions, grasp the opportunity to co-operate with nearby regions to create synergy effect, Hong Kong’s innovative technologies can be driven towards internationalization. As the development of the Hong Kong economy is not balanced, we must explore new openings outside the pillar industries. The enhancement of innovative technologies can precisely drive re-industrialization in Hong Kong and bring new opportunities to the territory.
Through mobile communications technology and artificial intelligence, the integration of technology into financial development has become the major global trend. The Budget has decided to vigorously develop financial technologies (Fintech) such as electronic payments, robo-advisors and crowdfunding. I believe the Steering Group on Financial Technologies can implement more researches and explore the feasibility of applying new technologies to various financial services.
However, while developing Fintech, I wish that the Government can address the problems faced by the Fintech sector as soon as possible. First, the present legal framework for monitoring the traditional financial institutions fail to dovetail with the rapid development of Fintech. I wish that the Government can soon implement a set of legal framework applicable to the current Fintech so that support for the development of Hong Kong’s Fintech can be more comprehensive. Then, pertinent Fintech talents will naturally be more at ease to come and take part in infrastructure investment.
Moreover, the Government should pay great attention to the impact created by technological development on talents of the traditional financial services industry. With development in Fintech, computers, artificial intelligence and machines are more widely applied to the different types of work in the financial services industry. There is bound to be a change in the demand for manpower. For people who are engaged in some traditional jobs, for instance, wealth management advisors, clerks or other front-line work, they will inevitably face the problem of job loss in the future. I wish that the Government can face this problem squarely before it is too late to avoid a wave of unemployment in the financial services industry. To cope with the situation, the Government should introduce measures as soon as possible, discover new posts and help traditional talents to integrate into Fintech to prevent them from becoming victims of technological development.
On the medical front, the Budget has made many new proposals. These include the setting aside of a dedicated provision of $200 billion for a 10-year hospital development plan to enable the Hospital Authority to expand and upgrade healthcare facilities in a more flexible and long-term manner to lessen the impact of population ageing on the Hong Kong society and medical services. The Financial Secretary says this $200 billion can provide 5 000 additional hospital beds, representing an increase of 18%, and operating theatres will also increase by 40% to 320. This is definitely a sound measure which is forward-looking. At the moment, the demand for accident and emergency (A&E) services at public hospitals is huge. With population ageing, the public’s demand for A&E services will only increase. I believe this $200 billion can alleviate the pressure on public healthcare services.
Yet, I also wish that the Government will not neglect the development of private healthcare services. The Government has all along observed the double-track development of public and private healthcare services. Nonetheless, it is evident that right now, there are only about 4 000 beds in private hospitals. The Government should strive to help private hospitals increase beds to divert those who are waiting for public healthcare services to private healthcare services so as to alleviate the pressure on public hospitals.
Moreover, I would like to talk about the voluntary health insurance scheme. Currently, the Government is still working on the details of the operation of the scheme and its technical aspect. I believe a consultation report will be released soon. I think the Government should raise the incentives for the public to join. For example, it should increase the tax deduction amount, study ways to encourage young and healthy people to join, in order to increase the appeal of the scheme. Meanwhile, I also earnestly hope that the Government can replace the enactment of legislation with market agreement to launch the scheme. In fact, the industry or the public looks forward to the early launching of the scheme, and market agreement is the best way to allow the public to benefit from the scheme as soon as possible. I wish that the Government can implement the relevant measures soon.
Finally, I would like to discuss the preparatory work for the Independent Insurance Authority (the Authority). At present, everything is ready for the Authority. Once the Legislative Council passes the Budget, the search for an office and recruitment can proceed. According to the Government’s plan, 130 professionals will be recruited by the end of this year and the Authority will formally take over the statutory functions of the Office of the Commissioner of Insurance. After obtaining the funding approval by the Legislative Council, I wish that the Government will embark on recruitment soon. When the Legislative Council passed the Appropriation Bill 2015 last year, the Government made a lot of promises to the industry regarding the implementation details. I hope that after the Authority begins operation, the Government can honour its promises as soon as possible so that monitoring can start smoothly for the insurance industry to develop steadily under the new monitoring regime.
I so submit.