Policy Advocacy

After several years of fiscal deficits and economic adjustments, we are pleased to see the Hong Kong SAR Government's efforts in revenue generation and expenditure management beginning to bear fruit. According to the latest forecasts, the 2026-27 fiscal year is expected to mark a pivotal turning point toward achieving a surplus. This not only signifies a return to sound public finances in Hong Kong but also presents us with invaluable strategic opportunities.

However, the emergence of a surplus should not be viewed as a reason to relax fiscal discipline; instead, it should serve as a starting point for strategic investments. In light of the complex global geopolitical landscape and the waves of technological change, we recommend that the government adopt a principle of "prudent finance and proactive investment." "Prudent" refers to the stringent control of unchecked growth in recurrent expenditures, while "proactive" emphasizes the concentration of resources in areas with high investment returns. These returns should be understood not only in terms of short-term fiscal revenue but also in enhancing Hong Kong's long-term productivity, optimizing governance effectiveness, and solidifying the strategic position of key industries.

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