Facilitation for market to increase number of student hostels to consolidate Hong Kong's status as education hub
The Development Bureau (DEVB) and the Education Bureau (EDB) announced that the Hostels in the City Scheme will start accepting applications today (July 21). Through the Scheme, the Government has streamlined development control procedures to encourage and facilitate the market to convert commercial buildings into student hostels on a self-financing privately funded basis to increase the supply of hostel places, thereby strengthening Hong Kong's position as an international hub for post-secondary education.
"Our policy objective is to create a clear and easy-to-follow operational framework that is in compliance and cost-efficient, while putting in sufficient measures to ensure that hostels under the Scheme fulfil the Government's requirements", a Government spokesman said.
Specifically, operators may make use of the facilitation measures under the Scheme to apply for converting commercial buildings into eligible student hostels. In terms of planning procedures, the Town Planning Board has already expanded the definition of "Hotel" under the planning regime to cover eligible student hostels under the Scheme. As a result, since "Hotel" is an "always permitted use" in most commercial sites, no planning procedures would be required for converting those commercial buildings into student hostels. Under the buildings regime, converted student hostels under the Scheme will continue to be treated as non-domestic buildings for plot ratio and site coverage calculations, meaning that the existing gross floor area (GFA) of the commercial building can be retained. Moreover, facilities previously exempted from GFA calculations before conversion (e.g. car parking spaces and loading/unloading areas) can be retained and continue to be exempted from GFA calculation, so as to facilitate developers/operators to flexibly convert these facilities into facilities supporting hostel uses (e.g. gyms, study rooms, etc.) so that the hostel better suits the study and daily needs of the student tenants. In terms of land administration, most of the leases stated for non-industrial use allow student hostel use without the need for lease modification or payment of premiums. For the small number of cases where a lease modification is needed, the Lands Department will assess the amount of premium payment.
The Scheme welcomes wholesale conversion of an entire commercial building into a student hostel, while permitting partial conversion if specific conditions are fulfilled.
Industrial buildings and buildings in industrial zonings are not eligible under the Scheme. However, commercial buildings that have undergone wholesale conversions from industrial buildings located on non-industrial zonings would be eligible under the Scheme, provided that the relevant land administration procedures have been completed.
Interested developers/operators need to submit applications to the EDB using a prescribed form, and fulfil eligibility criteria under the Scheme, including:
(a) student hostels under the Scheme should be occupied by full-time local or non-local students of specified eligible institutions operating locally accredited post-secondary programmes at the sub-degree or degree levels. For operational flexibility, the Scheme allows occupation of at most 10 per cent of hostel places by persons who are affiliated with eligible institutions, such as wardens and visiting scholars, etc;
(b) conversion works should be completed within 18 months (the EDB may consider granting an extension based on actual circumstances in consultation with relevant bureaux/departments);
(c) hostel rooms must not be sold off individually; and
(d) developers/operators must take all necessary and reasonable measures to ensure that the operation of the hostel complies with relevant statutory and administrative requirements, while also striving to maintain a safe and suitable living environment for students.
When submitting applications, developers/operators must sign a statutory declaration that the eligibility criteria under the Scheme will be complied with. While the student hostel under the Scheme is in operation, a certified audit report is required to be submitted to the EDB annually, certifying that the eligibility criteria under the Scheme have been duly complied with during the reporting period. Proper records should also be maintained to demonstrate that the operator has continuously complied with the criteria. In case of non-compliance, the Government will take appropriate enforcement actions based on the aforementioned statutory declaration, land lease, and relevant ordinances.
The Government has launched the dedicated website of the Scheme (www.studenthostel.gov.hk) to announce the Scheme's details. The EDB will also publish the list of student hostels with approvals secured on the website in the future. The Development Projects Facilitation Office (DPFO) under the DEVB will provide one-stop facilitation services to applicants, including handling enquiries related to facilitation measures and application progress. Telephone and email contacts of the EDB and the DPFO are available on the dedicated website.
Source: AI-found images
Speech by FS at CUHK EMBA Annual Conference
Following is the speech by the Financial Secretary, Mr Paul Chan, at the CUHK EMBA Annual Conference today (May 9):
Professor Dennis Lo (Vice-Chancellor and President, the Chinese University of Hong Kong (CUHK)), Professor Lin Zhou (Dean, CUHK Business School), Macy (Chairperson of Organizing Committee, Ms Macy Chan), Michael (Chairperson of Organizing Committee, Mr Michael Chan), CUHK EMBA alumni and students, business leaders, distinguished guests and friends,
Good evening.
Addressing a room full of Executive MBA students and graduates is both an honour and a privilege. There is a particular kind of ambition in this room — one that is not content with success alone, but driven to understand it more deeply, in the belief that better ideas lead to greater impact.
That kind of commitment — to learning, to growth, to asking harder questions — is precisely what today's conversation is about.
The theme of this conference, which focuses on innovation and agile leadership, could not be more timely. Most of us here have lived through the Internet age and the smartphone revolution, which made communication faster and more seamless than anyone had imagined.
Today, the rise of AI places us at a more fundamental tipping point. Technology is not merely changing the answers — it is redefining the questions themselves.
Consider what is already within reach. An AI assistant can learn your preferences, curate a personalised shortlist, and simply ask for your confirmation. We should even ask whether the smartphone and the search engine will remain our primary gateways to the digital world, or whether something altogether new is already taking shape.
To draw an analogy, the power of technology does not lie in drawing the old map with greater precision. It lies in revealing how much of that map remains uncharted — and in showing us that entirely new maps, with new co-ordinates, are being drawn.
This redefinition is unfolding across three dimensions simultaneously.
First, the redefinition of products. Products are no longer discrete, standalone objects. A smart car is a vehicle, but also a mobile platform for data. An insurance policy can be a contract, but equally a dynamic reflection of health data. Innovation today is born from cross-sector convergence and continuous evolution.
Second, the redefinition of services. Services are no longer delivered solely by enterprises. They emerge from collaborative networks of people and AI. But the more profound shift is in what customers now expect. In the past, good service meant reaching the right person quickly. Today, customers expect a solution that anticipates their needs before articulating them. This requires a new architecture of service delivery: human and machine, with AI handling the scale, the speed, and the personalisation that no human team alone could sustain.
Third, and most importantly, the redefinition of business models. In the past, we sought optimal solutions within established frameworks — when demand rose, we expanded capacity; when service needs grew, we opened more branches. Technology invites us to break out of those frameworks entirely. Intelligent manufacturing means that "economies of scale" is no longer the only answer; flexible supply chains have made customised, on-demand production the new normal.
These three redefinitions are opening a commercial frontier unlike anything we have seen before. But if the benefits of technology accrue only to a small circle, its power remains fundamentally constrained. This brings me to the second message I want to leave with you today: inclusivity.
Inclusivity is not charity. Yet it is the smartest business strategy available. The unmet needs of the broader public represent the largest and most underserved market opportunity in existence. When you make quality healthcare, education and financial services accessible and affordable to ordinary residents, you are not serving a group in need of handouts — you are unlocking a vast market that traditional business models have consistently overlooked.
Hong Kong has a distinctive role to play here. We can be a co-architect of standards, a hub for capital, and a bridge between innovation and real-world deployment — from clinical validation of smart healthcare, to green technology financing, to regulatory sandboxes for fintech. Our contribution draws not only on institutional strengths and international networks, but on our genuine commitment to broad-based participation.
Yet inclusive products and services are only the first step. The deeper dimension is empowerment.
History reminds us that the dividends of technological revolution need to be actively guided to reach the many. In the age of steam, and again in the Internet era, early gains concentrated among capital owners and top-tier talent. But today we have the opportunity to write a different story. AI, as an amplifier of human capability, is already enabling what was previously unimaginable: a solo entrepreneur, with the right tools and the right vision, can build a unicorn.
In other words, the unit of competitive advantage is shifting — from the size of your team to the skill with which you orchestrate your tools.
Our mission should be to make that shift available to everyone. To turn individual readiness into collective prosperity, and to ensure that the productivity gains of AI flow broadly across the society.
This is precisely why, in this year's Budget, I placed such emphasis on the "AI Training for All" initiative.
We are not trying to turn everyone into an engineer. We are ensuring that workers, managers, SME (small and medium-sized enterprise) owners, and ordinary residents become capable collaborators with AI: people who can access it, use it effectively, and put it to work as their assistant.
That may sound ambitious, but consider this: if AI can one day be as intuitive as the smartphone, then mass adoption is not difficult to imagine at all. Just as computers once migrated from specialist facilities into offices and homes, AI will find its way into everyone's daily work and life.
For business leaders, it may be tempting to think of AI as "digital employee" that can replace existing workers. But think of a different framing: equipping your workforce with powerful digital assistants can achieve productivity gains, while also freeing your people to do what humans do best — create, imagine and innovate.
Companies that take those extra steps, and think those extra moves ahead, will find that an empowered workforce is also a more innovative one.
All in all, the power of technology must ultimately be measured by its contribution to inclusive growth. And inclusive growth, in the end, depends on, yes, commercial acumen — but also empathy, compassion, and the conviction that a rising tide should lift all boats. I can see that those qualities live in this room.
I will close with this thought. Someone once joked that economists know the price of everything and the value of nothing. With AI, let us never fall into the same trap — in our race to price every efficiency gain, let us not lose sight of the deeper value we are trying to create: a society where the fruits of innovation are broadly shared, and where technology lifts not just the fortunate few, but everyone willing to reach for it.
So here is my ask: let us grow the pie together. And make sure we cut it well.
Thank you very much.
Source: AI-found images
Speech by FS at CUHK EMBA Annual Conference Source: HKSAR Government Press Releases
Speech by FS at CUHK EMBA Annual Conference Source: HKSAR Government Press Releases
Source: AI-found images
