Blog

Building the Future Together through Dialogue and Collaboration

The upcoming Budget will be delivered on 25 February, and the public consultation has been underway for nearly a month. During this period, we have actively been engaging with representatives from various sectors and industries, as well as with organisations and members of the public, to listen to their views and suggestions. Yesterday, I participated in RTHK's programme "Voices from the Hall", where I engaged directly with residents from diverse backgrounds to gain a more comprehensive understanding of their concerns and ideas. We also had open and candid discussions on the current internal and external environment, as well as the challenges facing Hong Kong.

Yesterday, I attended the RTHK's programme "Voices from the Hall", where I engaged directly with members of the public to discuss the upcoming Budget.

In fact, feedback from various consultation sessions reflects a general consensus that, from a macro perspective, Hong Kong's economy has been developing steadily in the years following the pandemic. One notable example is the financial sector, which accounts for 26% of our GDP and remains one of our largest industries. The local financial market performed strongly last year, boosting market demand and fostering positive expectations for the sector. On the other hand, the trade sector, which contributes 15% of our GDP, benefited from robust export performance, providing solid support to the overall economy. In addition, a series of mega events attracted more visitors to Hong Kong, injecting energy into the city and creating a vibrant, dynamic atmosphere.

However, geopolitical tensions around the world are intensifying, with unilateralism and hegemonism on the rise. As global uncertainties grow, the possibility of increased market volatility cannot be ruled out. We must stay vigilant and proactively guard against the potential impact of external market fluctuations on Hong Kong's financial markets and capital flows. At the same time, as Hong Kong's economy undergoes transformation, there will inevitably be imbalances and uneven development. Certain industries and residents are indeed facing challenges.

Over the past few decades, Hong Kong's economy has undergone several rounds of transformation. The reform and opening-up of our country, combined with the flexibility, innovation and unwavering efforts of our enterprises and people, have driven continuous progress. The steadfast support from the nation and the steady growth of the Mainland economy remain Hong Kong's strongest pillars. This year marks the beginning of the National 15th Five-Year Plan. The country is advancing high-level two-way opening-up, fostering technological self-reliance and strength, deepening the integration of technological and industrial innovation, and more. These national strategies present new opportunities for Hong Kong as an international centre for finance, trade, shipping, and innovation and technology. To seize these opportunities, our traditional industries must focus on enhancing quality and competitiveness, while emerging sectors should pursue rapid expansion. Together, these efforts will drive Hong Kong's economic development forward with greater momentum and resilience.

Yesterday, I attended the RTHK's programme "Voices from the Hall", where I engaged directly with members of the public to discuss the upcoming Budget.

In this era of accelerated transformation driven by "AI+", the widespread and high-quality application of technology will be a key determinant of an economy's core competitiveness. A question we must address—through collective wisdom and joint efforts—is how to better harness technology to empower industries, businesses and the public, enabling them to fully benefit from the rapid advancement of AI. By doing so, we can help enhance their creativity and competitiveness, while advancing new business models and markets.

As we undergo economic restructuring, it is equally important to focus on cultivating new engines of growth and creating more diverse, high-quality employment opportunities—ensuring that the benefits of development are more widely shared across various sectors of the society.

High-quality economic development provides a solid foundation for addressing the challenges and needs that emerge throughout the development process. At the same time, we must continue to exercise prudent management of public finances. Last year, we implemented a reinforced fiscal consolidation programme, which helps contain the growth of government expenditure. With the support of a buoyant financial market, the overall revenue—including stamp duty receipts—has increased, enabling the Government to achieve an operating surplus earlier than anticipated. However, the total government expenditure continues to rise. Spending on education, healthcare and social welfare now accounts for nearly 60% of recurrent government expenditure. It is therefore essential for the Government to allocate resources with precision and enhance efficiency, ensuring that our limited public resources are used wisely and that public services remain financially sustainable.

We must continue to invest proactively in the future—particularly by accelerating the development of the Northern Metropolis, seizing emerging opportunities, and strengthening the drivers of long-term growth. As returns on infrastructure investments typically materialise gradually after project completion, the capital account is expected to remain in deficit this year due to increased capital works expenditure. To support ongoing infrastructure development, we will leverage market forces, including the issuance of bonds at an appropriate scale. Currently, the HKSAR Government's outstanding debt stands at approximately 12% of GDP—a level that remains very healthy by international standards.

In the coming month and so, we will continue to engage in extensive consultations and in-depth dialogue with stakeholders across various sectors, drawing on the collective wisdom of the community. Our goal is to ensure that the upcoming Budget more effectively unleashes Hong Kong's economic potential, strengthens development momentum, and delivers tangible benefits to the public. Together, we can build a better and brighter future.

January 11, 2026