Key HR takeaways from Hong Kong's 2024 Policy Address

Source: Humanresourcesonline.net

Initiatives announced include the launch of a Governance Talents Development Programme to further develop governance capabilities of officers at leadership ranks, and near- and long-term measures to strengthen the training of local workers.

Hong Kong Chief Executive John Lee delivered his third Policy Address at the LegCo on 16 October 2024 (Wednesday), one that places continued focus on reform.

It will continue to build on four proposals put forward by President Xi Jinping in July 2022, namely:

• Implementing the principle of "One Country, Two Systems"

• Strengthening governance systems

• Continuing economic development

• Improving people's livelihood

CE Lee said: "This Policy Address will deepen our reforms and explore new growth areas. Measures include building an international gold trading market, promoting high value-added maritime services, and building a commodity trading ecosystem and internationally accredited metal warehouses.

"We will promulgate the Development Outline for the Hong Kong-Shenzhen Innovation and Technology Park in the Loop, building a testing ground for policy and institutional innovation.

"We will also set up a working group on developing the low-altitude economy."

He also shared that the Address will outline the vision and objectives for reforms and changes, as well as the related key measures and KPIs.

Here are some policy highlights that are relevant to businesses and HR leaders.

'Strengthen our governance systems'

One focus area under this theme is to strengthen governance capabilities of the civil service.

Strengthen civil service management

Efforts in strengthening the reward and punishment system in the past two years include launching the Chief Executive's Award for Exemplary Performance, streamlining the mechanism of directing officers with persistent sub-standard performance to retire, improving the efficiency and effectiveness of handling disciplinary cases.

Looking ahead, the government will review the Public Service (Administration) Order and Public Service (Disciplinary) Regulation to enhance the civil service disciplinary mechanism, and will consult with the Public Service Commission on the preliminary proposals next year.

National studies and international training

CE LEE noted that the civil service must have a full grasp of the policy objectives and strategies of the nation. To drive this, the government will organise seminars and learning activities on the important policies, reports and so on delivered by the Central People's Government (CPG).

"We will also arrange for the middle, senior and directorate level officers to receive training at renowned institutions in the Mainland and overseas to help foster their sense of national identity and develop global perspectives."With the support of the CPG, the HKSAR Government will continue to send officers to work in various offices of the United Nations through a dedicated programme."Civil service exchange programme between Hong Kong and the Mainland

The Government will collaborate with the Mainland cities in the Greater Bay Area, as well as Beijing, Shanghai, Chongqing, Wuhan and Hangzhou to launch mutual civil service exchange programmes.Launch of the Governance Talents Development Programme

The Civil Service College will launch a Governance Talents Development Programme to further develop governance capabilities of officers at leadership ranks. The college will also enhance its internal research and training capability building.

The above aside, the government will also drive digital transformation in the public service. As part of this focus, CE Lee said the Digital Policy Office (DPO) will endeavour to fortify information systems of the Government and public organisations. The DPO will also spearhead the pilot use of a locally developed generative AI document processing copilot application in government departments.

About 20 digital government and smart city initiatives will also be launched this year, including using blockchain technology for issuing electronic certificates for designated civil service examinations and electronic licensing by the Fire Services Department, as well as the use of AI for handling public enquiries.

'Consolidate and enhance our status as an international financial, shipping and trade centre'

As part of this second area of focus, CE Lee announced the following:

International Financial Centre

There will be deeper focus on positioning Hong Kong is an international financial centre, seeing that it ranks third globally and first in investment environment. The government will continue with reforms to reinforce and enhance the SAR's status as an international financial centre.

Establishing the Hong Kong Maritime and Port Development Board

The existing Hong Kong Maritime and Port Board will be reconstituted into the Hong Kong Maritime and Port Development Board, a high-level advisory body to assist the Government in formulating policies and long-term development strategies.

To be chaired by a non-official member, with other members largely from the maritime sector, the new body will be underpinned by dedicated staff to undertake research and publicity work. Additional funding will be provided to enhance its research capabilities, strengthen its Mainland and overseas promotional work and step up manpower training, supporting the Government in policy implementation more effectively and promoting the sustainable development of Hong Kong's maritime industry.

Promote development of a 'headquarters economy'

The government will step up efforts to bring in strategic enterprises from outside the city to set up headquarters or corporate divisions in Hong Kong. The Fiancial Services and the Treasury Bureau will submit a bill this year to introduce a company re-domiciliation mechanism obviating the need for companies intending to re-domicile in Hong Kong to be wound up in its original domicile overseas and establish a new company in Hong Kong.

The companies will be able to preserve their legal identity and business continuity, saving cost as a result of the simplified procedures.In that vein, it was announced that the validity period of multiple-entry visas for foreign staff of companies registered in Hong Kong, including non-permanent residents, will be extended to a maximum of five years to facilitate their visit to the Mainland, and their applications will receive priority processing.This aside, the government will strengthen the range of financial services available for Mainland enterprises in Hong Kong wishing to expand overseas, encouraging Mainland financial enterprises to co-ordinate and manage their overseas business in Hong Kong and facilitating their internationalisation.

The Hong Kong Monetary Authority is exploring ways to enable Mainland enterprises looking to go global to enjoy facilitation of cross-boundary RMB settlement and financing through enhanced offshore RMB liquidity, utilising technology and promoting international collaboration.

Commence training for international legal talents

This year will see the official launch of the Hong Kong International Legal Talents Training Academy, cultivating legal talents to be familiar with international law, common law, civil law, national legal systems and other legal aspects.

The dedicated office and expert committee under the Department of Justice (DoJ) are pressing ahead with the related work.

'Develop new quality productive forces tailored to local conditions'

The core element of this focus area is to achieve high-quality economic development through technological empowerment. "Hong Kong is striving to become an international innovation and technology (I&T) centre by promoting the upgrading and transformation of traditional industries while actively nurturing emerging ones.

"We will spare no effort in developing new quality productive forces tailored to local conditions," it was stated.

Initiatives under this area include:

Optimising the strategy and institutional set-up for the development of new industrialisation

The government will draw up a medium to long-term development plan for new industrialisation in Hong Kong. It is also looking to press ahead with the establishment of the Hong Kong New Industrialisation Development Alliance to promote closer collaboration among the Government and the industry, academia, research and investment sectors, building a co-operative platform for new industrialisation in Hong Kong.

This includes providing more financing opportunities and fostering I&T co-operation between newly-listed companies in Hong Kong and local universities.

Attract international start-up accelerators to establish a presence in Hong Kong

The government will launch the I&T Accelerator Pilot Scheme with a funding allocation of HK$180mn at a one-to-two matching ratio between the government and the institution, up to a subsidy ceiling of HK$30mn.

The Scheme aims to attract professional start-up service providers with proven track records in and beyond Hong Kong to set up accelerator bases in Hong Kong, fostering the robust growth of start-ups.

'Regional Intellectual Property Trading Centre'

Hong Kong's intellectual property (IP)-intensive industries accounted for about 30% of its Gross Domestic Product and of total employment respectively. The SAR will strengthen its position as a regional IP trading centre by expanding the IP trading ecosystem of the I&T sector and creative industries.

This involves (not exhaustively) the following:

Strengthening training of IP talents

The government will continue to discuss with the patent agent sector and stakeholders to plan for the introduction of regulatory arrangements for local patent agent services, covering qualification, registration, and other areas, aiming to nurture professional talents and enhance service quality.The IPD will collaborate with the Qualifications Framework Secretariat to develop practical teaching materials for deployment by training providers, benefitting personnel across 23 different industries.

'Build Hong Kong into an international hub for high calibre talents'

This next theme covers the following focal points:

Coordinate and promote integrated development of education, technology, and talents

"Education nurtures our future, technology denotes our strength, and talents lead our development," it was highlighted. With this in mind, the government will set up the Committee on Education, Technology and Talents.

Led by the Chief Secretary for Administration, the committee will co-ordinate and drive the integrated development of education, technology and talents, expand connections, formulate policies to attract and cultivate talents, foster the development of technologies, and also promote Hong Kong as an international hub for high-calibre talents.

Attract talents

Hong Kong boasts five of the world's top 100 universities and is seen as an international hub for exchange and collaboration among high-calibre talents.

Trawl for talents

The Government implemented a new talent admission regime in late 2022. More than 380 000 applications have been received to date, and around 160 000 talents have arrived in Hong Kong with their families.In the next five years, there will be a projected shortage of around 180 000 workers across different sectors. To build a quality talent pool for development, the government will reform various aspects of the talent admission regime, including:

• updating the Talent List to include talents required for development of the 'eight centres';

• expanding the list of universities under the Top Talent Pass Scheme to 198 universities by adding 13 top Mainland and overseas universities, and extending the validity period of the first visa of high-income talents under the scheme from two years to three years;

• enhancing the General Employment Policy and the Admission Scheme for Mainland Talents and Professionals, providing new channels to attract experienced specialists in specific skilled trades facing acute manpower shortage to come to Hong Kong. There will be a quota under the new arrangement;

• introducing a new mechanism under the Quality Migrant Admission Scheme, proactively inviting top-notch talents to come to our city for development, promoting Hong Kong as the focal point of international high-calibre talents, and

• extending for two years the pilot arrangement of including graduates from the GBA campuses of Hong Kong universities under the immigration arrangements for non-local graduates.

Assist talents in pursuing development in Hong Kong

The HKTE will step up promotion of its online platforms to offer comprehensive information on salaries, taxation, education, visas and so on, in addition to providing personalised assistance. The HKTE will expand its network of collaborative partners and organise online and in-person job fairs with industries and employer organisations, to allow employers to directly match jobs with talents.

It will also organise another international talent forum and conduct overseas promotion.

Promote development of an international hub for post-secondary education

Nurture future talents and establish the 'Study in Hong Kong' brand

The Government has shared a commitment to developing Hong Kong into an international hub for post-secondary education. Relevant measures include:

• incentivising more local students to pursue advanced studies – The government will set up the Hong Kong Future Talents Scholarship Scheme for Advanced Studies, beginning in the 2025/26 academic year, offering scholarships each year to up to 1 200 local students enrolling in designated postgraduate programmes;

• creating the 'Study in Hong Kong' brand – The government will strive to host international education conferences and exhibitions. We will also encourage local post-secondary institutions to enhance collaboration and exchange with their counterparts around the world in promoting the "Study in Hong Kong" brand on a global scale, and to attract more overseas students, especially those from ASEAN and other B&R countries, to study in our city through the provision of scholarships and other incentives, and

• improving hostel facilities – The government will launch a pilot scheme to streamline the processing of application in relation to planning, lands and building plans, so as to encourage the market to convert hotels and other commercial buildings into student hostels on a self-financing and privately-funded basis, increasing the supply of student hostels. The Government will also make available suitable sites for the private sector to build new hostels, having regard to market demand. The Development Projects Facilitation Office under the Development Bureau (DEVB) will provide one-stop advisory and facilitation services for these projects.

Promote quality development of self-financing institutions

The government will introduce a bill next year to amend the Post Secondary Colleges Ordinance, with an aim to improve the regulatory and quality assurance mechanisms of self-financing post-secondary institutions.Develop the Northern Metropolis University Town

The government has earmarked more than 80 hectares of land in the Northern Metropolis for the Northern Metropolis University Town, and will encourage local post-secondary institutions to introduce more branded programmes, research collaboration and exchange projects with renowned Mainland and overseas institutions in a flexible and innovative manner.

It will retain flexibility in the planning process to facilitate development of student hostels, and plans to publish the Northern Metropolis University Town Development Conceptual Framework in the first half of 2026.

Nurture talents

Promote multiple pathways

Advance the development of Universities of Applied Sciences: The Hong Kong Metropolitan University has been recognised as the first university of applied sciences (UAS) in Hong Kong. The UAS alliance will be established this year to, among other things, embark on joint promotion and strengthen collaboration with UASs around the world. The Government has allocated a start-up fund of HK$100mn for the alliance.Expand vocational talent pool: The Government will build a campus for the newly established Hong Kong Institute of Information Technology, under the Vocational Training Council, and develop its Lift and Escalator Technology Centre.

'Improve people's livelihood in pursuit of happiness'

This theme involves building a caring and inclusive society, strengthening labour support, and more. HR and business highlights are as follows:

Build a caring and inclusive society

CE Lee said: "I attach great importance to building a harmonious and stable community, one that is caring and inclusive, providing targeted assistance to the underprivileged and families in need. Social welfare tops public expenditures of all policy portfolios, with more than HK$300mn spent on social welfare each day.

"This underlines the government's emphasis on social welfare."

Selected announcements made in this area include:

Promoting women's development

There are many women in Hong Kong playing leading roles. To promote women's workplace development, the government will establish a network run by leading women from all walks of life and launch a mentorship programme, 'She Inspires'. Under the programme, female university students will be paired with mentors from the senior management of different sectors.Support working parents

To support working parents, CE LEE announced the setting up of 10 aided, standalone, child care centres last year. Moving forward, the government will set up one more childcare centre providing 100 additional places for day childcare services. Service places under the Neighbourhood Support Child Care Project will be increased by 25%, to 2 500, with the estimated number of beneficiaries increasing to 25 000.

Strengthen labour support

Reform the Employees Retraining Board and vigorously strengthen the training of local workers

On this point, CE Lee shared: "In the last Policy Address, I announced a comprehensive review on the Employees Retraining Board (ERB), which has been completed. I accept the recommendations on reforming the ERB, enhancing its role and positioning, from providing employment-related training targeted at low-skilled workers to devising skills-based training programmes and strategies for the entire workforce.

"In face of intense market competition, rapid industry development and widespread use of technology application, it is particularly important for the workforce to engage in life-time learning and acquire new skills."

To that effect, near-term reform measures include, from early next year, removing from the eligibility criteria the cap on education level of service recipients, and increasing the annual number of training places by at least 15 000, targeting at the entire workforce; strengthening collaboration with higher education institutions and leading enterprises; as well as enhancing the ERB's career planning and job-matching services for service recipients.

Additionally, the ERB will map out other medium to long-term measures, such as how it could gauge and anticipate future skill requirements, how to reposition itself and build a new branding, how its structure and staff be adjusted, and how the Employees Retraining Ordinance should be amended. The ERB will work out the details and timetable, with proposals expected by the end of next year.

Apart from the above, to support vocational training for local workers, the government will put up two vacant school premises for application by established and experienced trade unions for providing training courses for different industries, particularly the construction industry.

Implement full portability of the Mandatory Provident Fund

The Mandatory Provident Fund Schemes Authority will work out the details for implementing the "Full Portability" proposal, under which employees will be able to, making use of the eMPF Platform launched in June, transfer the accrued benefits derived from their employers' mandatory contributions to a scheme at their choice.

This will help encourage the employees to proactively manage their Mandatory Provident Fund (MPF) investments, promote market competition, and create room for fee reductions.Enhance the protection of wages on Insolvency Fund and protect employees

The Government will take forward various measures to enhance employee protection, including:

• abolishing the arrangement of using the accrued benefits of employers' mandatory contributions under the MPF System to offset severance payment and long service payment on 1 May next year. The Government will launch a 25-year subsidy scheme exceeding HK$33bn to share out employers' expenses upon the abolition of the offsetting arrangement;

• reviewing the coverage of ex-gratia severance payments under the Protection of Wages on Insolvency Fund, and exploring an increase in the ceiling of ex-gratia payments to enhance employee protection;

• implementing the new annual review mechanism of the Statutory Minimum Wage, and

• amending the continuous contract requirement under the Employment Ordinance by relaxing the threshold from working 18 hours in a week for four consecutive weeks (i.e. 72 hours in total) to an aggregate of 68 hours in four weeks, making it easier for employees to enjoy comprehensive employment rights.

Encourage employment among middle-aged and elderly persons

The three-year Re-employment Allowance Pilot Scheme was launched in July, with more than 20 000 participants to date. The Labour Department will continue the scheme and, through the Good Employer Charter 2024, encourage employers to adopt family-friendly employment practices such as flexible work arrangements.Promote occupational safety and health

In encouraging the industry to provide a safer working environment, the government, in July, mandated the adoption of the Smart Site Safety System (4S) for mobile plants in designated private-building works, and issued the first batch of 4S labelling.

CE Lee said it will strengthen the protection of workers' safety under a three-pronged approach, formulating safety guidelines, promoting optimal use of robotic technology and enhancing industry training.