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Chairman's Message
Chairman's Message - Hope for Steady Recovery of the Hong Kong Economy in the Second Half of This Year

Mr YUEN Mo (Chairman of the 52nd terms of office) July 2021

 

We urge the public to get vaccinated at their earliest convenience, so that Hong Kong will be able to achieve “zero case” as soon as possible, and can then seek to lift quarantine requirements with the Mainland, which will ultimately help the Hong Kong economy to thrive again.

 

This July marks the centenary of the Communist Party of China (CPC) and the 24th anniversary of Hong Kong’s return to the Motherland. Under CPC leadership, new China has developed at lightning speed. For Hong Kong, the successful implementation of “One Country, Two Systems” has allowed the city to uphold its unique strengths after the handover. Since the Hong Kong National Security Law was implemented a year ago, stability has been gradually restored to the business environment and society at large. As the epidemic eases and the HKSAR government and various sectors actively boost vaccination rates, there is hope that Hong Kong will soon be able to resume trade and other forms of interaction with the Mainland and overseas.

 

Social stability is conducive to bolstering Hong Kong’s Competitive Advantages

The promulgation of the Hong Kong National Security Law by the Central Government serves to ensure the steadfast and successful implementation of “One Country, Two Systems”. Targeting serious offences like secession, subversion, terrorist activities, and collusion with a foreign country or with external elements to endanger national security, the law does not affect the normal operation of businesses in Hong Kong.

 

In fact, since the Hong Kong National Security Law was enacted, law and order has been quickly restored, and confidence in Hong Kong’s business environment reinstated. Between mid-2020 and now, the net capital inflow to Hong Kong has persistently increased, exceeding USD50 billion in total. This is solid proof that the business environment of Hong Kong has not been affected. In particular, the city’s role as a financial and trade hub is as appealing to foreign investors as ever.

 

In addition, by further enhancing Hong Kong’s electoral system, such as through expanding the scale of the Election Committee and increasing the number of seats in the LegCo, the Central Government has facilitated effective governance in Hong Kong, and laid the ground for further enhancing the city’s administrative system and for fully realizing the “patriots administering Hong Kong” ideal. Under the new electoral system, government policies and operation of the LegCo will no doubt become more efficient.

 

Vaccination is key to economic recovery

Stabilizing social order and the amelioration of the epidemic have brought hope for economic recovery in Hong Kong. The first quarter of this year finally saw the end of GDP decline which had lasted through the previous six quarters. Benefiting from improved global economic conditions, the operations of Hong Kong businesses are also improving, with the number of export orders going up again. Tourism- and leisure-related sectors, however, are yet to escape the impact of the COVID-19 epidemic.

 

Hong Kong’s ability to contain the spread of COVID-19 is a requisite for full economic recovery, to which fostering promotion of vaccination will be crucial. In support of the HKSAR government’s vaccination program, CGCC has been actively mobilizing its members to encourage their employees to get vaccinated such as by providing “vaccination holidays”. CGCC has also launched a subsidy scheme to provide HKD1,000 and pre-vaccination check-up to each eligible grassroots citizen and frontline worker who did not receive any paid vaccination leave or subsidy from his/her employer. About 5,000 people are benefited from the scheme.

 

Ensuring mass vaccination is now a key criterion for lifting quarantine requirements and resuming tourism and business exchange between Hong Kong, the Mainland and other destinations. We urge the public to get vaccinated at their earliest convenience, so that Hong Kong will be able to achieve “zero case” as soon as possible, and can then seek to lift quarantine requirements with the Mainland, which will ultimately help the Hong Kong economy to thrive again.

 

In the long run, the country’s active promotion of deepened developments of the Guangdong-Hong Kong-Macao Greater Bay Area and the “Belt & Road” Initiative has created innumerable opportunities for Hong Kong’s economy. We hope all sectors will leverage the social stability brought by the Hong Kong National Security Law, and try their best to combat the epidemic. By aligning with the country’s “dual circulation” strategy and “14th Five-Year” Plan, and by repositioning Hong Kong based on its strengths, we will together steer the local economy toward steady, full recovery.