Mr Paul Chan, the Financial Secretary, stated in his blog that, tracing back to 2025, despite the uncertain external circumstances, the development of the local asset market has further improved, with a continuous inflow of funds, an increased number of visitors to Hong Kong, a fine manifestation of total exports and fixed capital investment, and stabilized local consumption. It's estimated that Hong Kong's economic growth will accelerate to 3.2% in 2026, the third consecutive year that the local economy has maintained a growth momentum. The good performance in exports and investment is the main driving force for boosting the economy. The simultaneous rise in both the price and transaction volume of the stock and property markets has consolidated the positive expectations of the market.
Photo source: FB of Paul Chan
Looking forward to 2026, Mr Paul Chan said that although new challenges would be inevitable, greater new development opportunities would also arise. He said that Hong Kong's economy is expected to maintain a good momentum, better integrate into the country's development continuously, and create more high-quality positions for the public. The market generally expects that the global economy can still maintain a moderate expansion even in the face of slowing growth impetus. As for the main growth engines in the next year, he expected the Chinese Mainland and Asia as a whole would be the key drivers, continuing to provide important support for Hong Kong's economy. Moreover, the cut of interest rate generally expected by the market would be beneficial to the development of local business and investment atmosphere.
Photo source: FB of Paul Chan
He said that the government would remain highly vigilant, preventing all kinds of "black swan" and "gray rhino" situations in the volatile external environment as well as balancing the two main axes of "security" and "development" to ensure that Hong Kong can continue to develop steadily in both society and economy next year.
Photo source: FB of Paul Chan
Mr Paul Chan also stated that since 2026 is the opening year of China's 15th Five-Year Plan, Hong Kong will be more proactive in aligning with national development strategies. Finance, innovation & technology, and trade will be the three key development engines for Hong Kong. Meanwhile, Hong Kong is accelerating the cultivation of artificial intelligence as a local core industry and empowering the upgrading and transformation of traditional industries with the "AI+" strategy. The development of the AI industry in Hong Kong will be promoted from six aspects: computing power, algorithms, data, application development, financial support, and talent cultivation. He said that Hong Kong will continue to play its role as a "super connector" and a "super value-adder" in the face of the new international economic and trade pattern and the reshaping of industrial and supply chains.
HA to consult District Councils about clearance and rehousing arrangements for redevelopment of Sai Wan Estate and Phase 1 of Ma Tau Wai Estate
The following is issued on behalf of the Hong Kong Housing Authority:
The Hong Kong Housing Authority (HA) announced today (December 30) thatit will respectively consult the Central and Western District Council and the Kowloon City District Council next month about the clearance and rehousing arrangements for the redevelopment of Sai Wan Estate (SWE) and Phase 1 of Ma Tau Wai Estate (MTWE).
"The HA conducts assessments on aged public rental housing (PRH) estates from time to time in order to ensure the buildings are in a safe condition and suitable for accommodating residents. The actual circumstances will also be considered in a prudent manner when deciding whether to redevelop a PRH estate," a spokesman for the HA said.
The HA has reserved adequate rehousing resources for the affected tenants for the clearance and rehousing proposals of the two aforementioned PRH estates. The proposed clearance and rehousing of SWE can be carried out under a single phase in 2029 so that all affected tenants will be rehoused to Phase 1 of the Ka Wai Man Road public housing development (Annex I) nearby in one go. With the thoughtful arrangements by the project team, this proposal will allow all affected tenants to move into the new estate together with their neighbours, maintaining warm neighbourhood relationships and continuing the sense of community. There are currently 636 flats in SWE. It is expected that the number of flats will increase by 460 to about 1 100 flats after the redevelopment to cater for more residents in need.
As for the MTWE redevelopment, in consideration of the unanimous views of the residents and the community that the clearance and rehousing arrangement should be expedited, the HA proposes using part of the new Mei Tung Estate public housing development as additional rehousing resources on top of the reception estate at To Kwa Wan Road public housing development so that the phases of redevelopment can be reduced from three to two, thereby significantly shortening the rehousing period for all MTWE residents from 14 years to seven years. The clearance in Phase 1 will cover Geranium House and Narcissus House and the rehousing of the affected tenants is anticipated to commence in 2028. The clearance and rehousing for Phase 2 will be announced in due course (Annex II). After the redevelopment of the entire estate, the number of flats in MTWE is expected to increase from more than 2 000 to about 4 000 flats, providing over 2 000 additional units for residents in need.
In addition, the HA also proposes offering domestic tenants affected by the clearance a domestic removal allowance to help meet part of their moving expenses. Eligible one-person and two-person households, regardless of age, may also opt to receive a cash allowance in lieu of rehousing to a PRH unit as an alternative option to suit their needs. For example, elderly persons may move into residential care homes for the elderly, settle in the Chinese Mainland, or live with their children, etc. Furthermore, the HA also proposes to accord priority to affected tenants of HA's announced clearance projects who would like to purchase subsidised sale flats (SSFs) in lieu of PRH in flat selection over other applicants in the SSFs sale exercise(s) launched before the target clearance date.
The HA will establish an on-site Community Service Team in SWE and MTWE to help maintain effective communication with the affected households, especially the elderly, to provide help and fully assist them in vacating their existing flats and adapting to their new living environment throughout the project.
Source: AI-found images
