“Hong Kong’s Policy Shift: From Grand Blueprints to Focused Execution”
By- Dr. Fakhrul Islam Babu
Hong Kong’s latest policy address under Chief Executive John Lee marks a clear evolution from expansive, long-horizon planning to disciplined, delivery-focused governance. Against global headwinds—slower growth, protectionism, and tech/trade frictions—the administration is prioritizing implementation, streamlining procedures, tightening accountability, and concentrating resources on projects with faster, tangible payoffs, especially the Northern Metropolis. The approach is anchored in two pillars: strengthening the economy and improving people’s livelihoods, while deepening integration with national development strategies.
Mission and Vision: Then vs Now:
Past mission: Preserve stability, safeguard Hong Kong’s position as a global financial hub, and pursue large-scale capacity expansion—especially in land and housing—within the “one country, two systems” framework.
Present mission: Deliver visible improvements to livelihoods through disciplined execution, stronger administrative accountability, and faster policy delivery, while aligning with national priorities.
Past vision: Gradual diversification on top of traditional pillars (finance, property, tourism), attracting overseas capital and firms, and relying on mega-projects to unlock future capacity.
Present vision: A high-execution, innovation-led, internationally connected city that serves as a dual gateway—bringing global activity in and helping mainland enterprises and the renminbi “go global”—with pragmatic solutions to housing, ageing, and competitiveness.
What’s Changed: Old vs New (Narrative Comparison):
Project strategy:
Then: Multiple mega-initiatives pursued in parallel, including the Kau Yi Chau reclamation.
Now: Reprioritization and focus—Kau Yi Chau shelved in favor of accelerating the Northern Metropolis, with the Chief Executive chairing a new decision-making committee and dedicated legislation to fast-track delivery.
Governance and accountability:
Then: Accountability centered on politically appointed officials; civil service accountability diffuse.
Now: A Heads of Department Accountability System introduces clear KPIs and consequences (including pay adjustments and potential dismissal) to align performance with outcomes.
Administrative processes:
Then: Siloed, rule-heavy approvals that slowed land, housing, I&T, and education projects.
Now: “Tear down walls and loosen binds”—simplified, optimized procedures and centralized coordination for the Northern Metropolis to compress timelines and improve interdepartmental execution.
Digital government:
Then: Incremental digitization and pilots with limited system-wide impact.
Now: An AI Efficacy Enhancement Team to embed automation, analytics, and smarter workflows across departments, boosting throughput amid fiscal and manpower constraints.
Economic positioning:
Then: Emphasis on attracting foreign capital and firms while leaning on traditional sectors.
Now: Deepen capital markets (stocks, bonds, gold), support RMB internationalization, and help mainland enterprises expand abroad, while promoting emerging industries—especially innovation and technology—and niche services (tourism upgrades, yacht and pet economies).
Talent and education:
Then: Cautious intake of non-local students; steady efforts toward international recognition of public exams.
Now: Higher non-local undergraduate quotas, more non-local admissions in semi-private schools on a self-funded basis, and active promotion of the city’s public examination recognition to global institutions.
International outreach:
Then: Focus on established partners and channels.
Now: Expanded reach with a new Economic and Trade Office in Kuala Lumpur and planned extensions into Latin America and Central Asia to diversify markets and opportunities.
Livelihoods and social policy:
Then: Long-term housing supply pipelines and broad social programs.
Now: More subsidised housing with faster delivery, refined imported-labour rules to balance local interests with manpower needs, targeted support for disadvantaged groups, and a high-level working group on ageing to coordinate health, care, and silver-economy initiatives.
Rationale and Context:
Political stability and more effective governance have enabled a shift toward tackling entrenched issues—narrow industrial base, lagging traditional sector competitiveness, a widening income gap, and fiscal pressures. At the same time, external conditions have hardened, necessitating a pragmatic, execution-first posture. With central government guidance and preferential policies, the SAR’s strategy emphasizes national integration, stronger government commitment to development, and steady, results-driven delivery rather than continual rollouts of new mega-initiatives.
Implementation Challenges and Mitigations:
Constraints: Tight fiscal space, limited manpower, and a crowded pipeline of major projects.
External pressures: Anti-globalization currents, protectionism, and technology/trade frictions affecting flows and confidence.
Organizational change: Cultural resistance within the civil service to performance-linked accountability and process reform.
Mitigations include prioritizing high-impact projects (Northern Metropolis), instituting clear accountability for Heads of Department, deploying AI to raise capacity without large headcount growth, and diversifying international economic ties beyond traditional partners.
Standard Watchpoints and Indicators:
Governance and delivery: Measurable reductions in approval times and demonstrable application of the new accountability framework.
Northern Metropolis: Legislative progress, committee activation, site formation, transport and housing milestones, and first-wave innovation tenants.
Markets and internationalization: Capital-raising activity, bond issuance, growth in gold and RMB-linked products, and traction with mainland firms “going global.”
Talent and education: Increases in non-local student intake and retention, and expanded international recognition of public examinations.
Livelihoods: Higher subsidised housing completions, effective targeting of support to vulnerable groups, and concrete outputs from the ageing strategy.
Bottom Line:
Hong Kong’s policy trajectory has moved from broad, future-oriented blueprints to a pragmatic, accountability-driven push for near-term, tangible outcomes. The mission now emphasizes livelihoods and competitiveness through better execution; the vision positions Hong Kong as an innovation-enabled, internationally connected gateway linking global markets and mainland China. Success will be defined by disciplined prioritization, administrative reform, and visible progress—especially in the Northern Metropolis—amid an uncertain global environment.
– Author is the President of China Bangladesh Friendship Center -CFC and President of The Asian Club Limited