The 'software' that's needed to revive Hong Kong's economy

John Lee's Asean and Gulf outreach is commendable - but Hong Kong needs more openness and sharper diplomacy.

- Bhavan Jaipragas

Sometimes too much is expected of a major policy speech, and it fizzles upon delivery.

That seemed to be the case with Hong Kong Chief Executive John Lee's third annual policy address, delivered on Oct 16.

Expectations were high, casting this as a defining moment to chart a new course that would revive the city's sputtering economy and move beyond the national security focus of recent years.

Mr Lee outlined 138 policy goals, with some headline-grabbing measures addressing immediate challenges: easing mortgage rules to revive the property market, cutting duties on hard liquor to support the struggling food and beverage sector, and tightening regulations on "cage homes" to improve living conditions for the city's poorest.

Sure, they are helpful to several segments of society - but the overall reaction from the economy-watching commentariat seemed to be a collective shrug. If the Hang Seng Index could speak, it would have sent the same signal, closing the week down 2 per cent. Adding to that was a local pollster's survey showing the policy address attracted the lowest audience and approval ratings since Mr Lee's appointment by Beijing in 2022.

Big Lychee, one of the city's few remaining English-language political blogs offering pointed commentary since the anti-dissent crackdown of recent years, summed up the discontent bluntly, saying the address "reflects the usual paucity of ideas, or an inability to admit that old ones don't work, or a dread of embracing new ones".

More neutral observers may see the tepid response as recognition that despite Mr Lee's best efforts, neither he nor his administration has full control over how and when Hong Kong's fortunes turn.