By Edith Lin

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The spotlight will be on Hong Kong Chief Executive John Lee Ka-chiu on Wednesday, with his fourth annual policy address expected to boost a sluggish economy, battle deep-rooted livelihood issues and win Beijing’s approval all in one go.
Just one day before Lee’s policy blueprint is unveiled, the Post shares what it has learned about his planned direction for the city.
1. All go with Northern Metropolis
An anticipated highlight of the policy address will be measures aimed at speeding up the progress of a 30,000-hectare (74,100-acre) megaproject along the city’s shared border with mainland China.
The Northern Metropolis is a government effort to diversify the economy and bolster the city’s innovation and technology (I&T) sector.
The megaproject is also a test of execution and governance for Lee’s administration, with Beijing eager for development to be accelerated.
The Post learned that Lee planned to offer legal and administrative-based solutions, such as adopting mainland construction standards, setting up a company to attract industries more efficiently and streamlining the decision-making process for development applications.
2. What about the economy?
The city saw a strong comeback in terms of initial public offering fundraising in the first half of 2025, propelling it back to the global top spot for the first time since 2019.
But, despite the financial market’s success, Hong Kong’s retail, catering and real estate sectors are facing a slow recovery.
On the retail front, sales in July rose by 1.8 per cent year on year, the third month in a row of growth following 14 consecutive months of decline.
But the total value of retail sales in the first seven months still contracted by 2.6 per cent compared with the same period in 2024.
The Post learned that proposals to help small and medium businesses were poised to be included in the policy address.
A source also said Lee would announce the opening of the city’s fifteenth Economic and Trade Office outside the mainland, with the new site to be located in Kuala Lumpur to explore new markets amid geopolitical tensions.
New offices in Latin America and Central Asia were also in the pipeline, the insider said.

3. Promoting AI
Amid ongoing efforts to spur I&T developments, Lee is expected to widen the application of artificial intelligence in the city.
An insider said government departments would take the lead in adopting AI at work to raise efficiency.
Lee’s administration would also reserve funds to support digital education in primary and secondary schools and the inclusion of AI in the local curriculum.
4. Jobs and housing
Safeguarding jobs for locals is likely to be an immediate concern for low-income residents, with the city’s unemployment rate climbing to a nearly three-year high of 3.7 per cent between May and July.
The construction industry has been hit the hardest, reporting an unemployment rate of 7.2 per cent.
Sources said the government would roll out more public works projects to increase jobs, while tightening controls on employers seeking to hire workers from outside the city.
After finding enough land to build more public rental flats and transitional housing, Lee is also expected to help residents climb the property ladder.
Insiders said the government might resume a housing scheme that allows tenants at select public housing estates to buy their rental homes.
5. Building a global education hub
A source said that Lee would further raise the non-local undergraduate quota at public universities to no more than 50 per cent, without compromising places for local students, to boost the “Study in Hong Kong” brand outlined in last year’s blueprint.
At the same time, authorities would reserve some commercial parcels for building hostels to accommodate the increased number of students from outside the city, at a time when the vacancy rate of commercial buildings is high.

6. Strengthening governance
After being embroiled in a procurement scandal involving the alleged use of fraudulent documents to win a government contract for bottled water, authorities are under pressure to rectify the situation and ensure the proper use of public money.
A source said that Lee would introduce a mechanism to hold senior civil servants accountable and penalise their misconduct.
This follows an earlier proposal to create a new accountability system involving annual appraisals and possible consequences, such as pay freezes.
7. But what’s missing?
With all the news emerging about the highlights of this year’s policy address so far, some areas of concern have yet to be touched on.
Such concerns include plugging loopholes in the Top Talent Pass Scheme, offering a lifeline to small businesses struggling with changing consumer patterns and boosting support for the city’s rapidly ageing population.
Other key talking points focus on better supporting carers and improving the mental health of young people.