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In the press

Updated: 2013-01-19 07:59

(HK Edition)

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Roles of EDC, FSDC crucial

The government on Thursday announced the establishment of the Economic Development Commission (EDC) and Financial Services Development Council (FSDC). The EDC will be responsible for making comprehensive long-term economic strategies and industrial policies that will guide Hong Kong's development in the right direction; while the FSDC will be responsible for conducting policy research and recommending solutions for financial industry diversification, to enhance Hong Kong's role as a leading offshore yuan center and to reinforce its status as an international financial center as well as exploring new markets and services.

The birth of these two advisory bodies shows the government has adjusted its policy thinking in response to the changing situation and changing demands of society with an eye on long-term planning and playing a more authoritative role in the financial market as well as steering economic development.

The four working groups of the EDC cover all the key areas of both traditional pillar industries and new growth points. Considering that the financial services industry has long been the backbone of the local economy, the FSDC was established to seize the opportunity presented by the central government's support for Hong Kong to strengthen its position as an offshore yuan trade center and international asset management center.

By emphasizing "seeking change while maintaining stability and serving the people with pragmatism", the SAR government has shown a willingness to play a more active role in the economy, a remarkable step forward from the traditional "positive non-interventionism" based on the "small government, big market" philosophy. This is necessary because the time has changed and some of the old rules are no longer adequate.

Truth be told, a more proactive government does not necessarily mean the end of the free market, as we have seen in the experience of Singapore, a city which is catching up with Hong Kong on the free economy chart despite the strong influence of the government. As long as the government respects the market mechanism and focuses on long-term comprehensive development planning to keep the economy on the right track, the two can complement each other in a win-win relationship.

This is an excerpted translation of a Hong Kong Commercial Daily editorial published on Jan 18.

Support Leung's PH goal

CE Leung Chun-ying, in response to a lawmaker's complaint that he has failed to fulfill his promise of accelerated public housing (PH) construction, said in a Q&A session at the Legislative Council (LegCo) on Thursday, that he is confident the number of completed PH units in the next five years will exceed 75,000.

It should be noted that promises made during election campaign are basically expectations, while Leung's Public Address (PA) must set out a feasible action plan. Leung has done his absolute best to honor his election promises, including raising plot ratios of PH estates, turning some government land parcels into residential sites and building public housing on lots originally marked as barren wasteland, so that the total number of completed PH units will top 75,000 in the next five years. He should be applauded instead of doubted for trying his very best.

Although the total number of completed PH flats will exceed 75,000 in the next five years for sure, questions remain as to whether PH development plans for the next 10 years and beyond can be fulfilled, because they will require large tracts of land and are bound to run into resistance. The PA expects some 445,800 apartments to be built in the next decade, including more than 245,000 PH units; while future efforts to address land shortage include building new towns and reclaiming 3,000 hectares of seabed. Such large-scale land developments are bound to face controversies and resistance, such as conservationist objections, disputes among stakeholders and interest groups and even politicization, all of which can stall land acquisition and delay housing supply plans.

Leung stressed again that the PH development plans listed in his PA are mainly aimed at meeting future needs of today's younger generation and any delay in discussions about and decisions on large-scale land developments will inevitably victimize today's young people 10-20 years down the road.

Hong Kong is a society of diverse interests and pursuits that always find themselves in disagreement one way or another, especially over land use and conservation of rural environment, which is why public consensus on and support for long-term housing solutions are critical for their success.

This is an excerpted translation of a Wen Wei Po editorial published on Jan 18.

(HK Edition 01/19/2013 page3)

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