August in Hong Kong 31.8.2017/No. 164 A condensed press review prepared by the Consulate General of Switzerland in HK Economy + Finance Increase training and pay for Hong Kong aviation technicians or face serious labour shortage, unions warn (SCMP, August 2) Hong Kong leader backs proposal to dump ‘miserly’ fiscal philosophy (SCMP, August 4) Tax breaks in store for Hong Kong start-ups as city struggles to stay competitive (SCMP, August 6) UnionPay ATM withdrawals to come under closer scrutiny in Hong Kong, as they are in Macau (SCMP, August 7) Hong Kong residents to get equal rights in key areas on the mainland, report states (SCMP, August 9) Hong Kong to get formal role in Beijing’s belt and road plan (SCMP, August 10) Hong Kong growth target raised 1 percentage point amid faster than expected surge (SCMP, August 12) Expert urges Hong Kong to tax bigger companies more to ease HK$5 billion revenue loss from proposed reform (SCMP, August 18) China firms lose appetite for Hong Kong assets after Beijing tightens capital controls (SCMP, August 22) Alibaba’s Jack Ma wants role in helping Hong Kong become ‘fashionable’, cashless society (SCMP, August 24) Retail sales in Hong Kong see highest growth in over two years thanks to local consumption (SCMP, August 30) Dual-class shares top agenda at financial leaders’ forum in new push by Hong Kong government (SCMP, August 31) Domestic politics Christine Choi becomes deputy at Education Bureau, as government unveils political appointees to serve government ministers (SCMP, August 1) Third top cop joins Hong Kong’s Security Bureau, raising eyebrows among lawmakers and concern groups (SCMP, August 1) New Hong Kong coalition seeks to collect 300,000 signatures to block express rail link plan (SCMP, August 3) Hong Kong leader Carrie Lam pledges to set up civil service training academy after visiting facility in Singapore (SCMP, August 4) Hong Kong leader reminded of need to strengthen national education of young (SCMP, August 7) Carrie Lam rejects idea to limit power of China’s officers at joint checkpoint in Hong Kong, or defer launch for consultation (SCMP, August 10) Hong Kong police investigate democracy activist’s claim he was kidnapped and tortured by mainland China agents (SCMP, August 13) Hong Kong activist makes bail but barred from travel over alleged misleading of police with China agents kidnap claim (SCMP, August 18) Jailing Hong Kong’s three young Occupy leaders ‘will deter others from joining protests’ (SCMP, August 18) Protesters turn out in force against jailing of Hong Kong activists (SCMP, August 21) Accusations of political motivation in activist jailings ‘totally unfounded’, Hong Kong’s chief executive Carrie Lam says (SCMP, August 22) Justice chief rejects claims of ulterior motive behind sentence review that jailed Hong Kong pro-democracy activists (SCMP, August 24) Chief executive dismisses suggestions that Hong Kong has entered ‘era of authoritarian rule of law’ (SCMP, August 27) Ousted pro-independence Hong Kong lawmakers to sit out Legco by-elections (SCMP, August 28) Carrie Lam urges Hongkongers not to be ‘overly sensitive’ about new Chinese national anthem law (SCMP, August 30) International relations Foreign politicians call for release of Hong Kong’s ‘political prisoners’ Joshua Wong, Nathan Law and Alex Chow (SCMP, August 19) UK diplomat stresses importance of upholding Sino-British Joint Declaration for Hong Kong (SCMP, August 25) Legal affairs and human rights Hong Kong’s online shoppers reminded to be vigilant as police admit they cannot help growing numbers of scam victims (SCMP, August 5) Hong Kong graft-buster calls for more power to probe misconduct at highest levels (SCMP, August 7) About 20 Indonesian domestic workers on Hong Kong police watch list over Islamic State links (SCMP, August 14) Health Hong Kong public hospitals need additional 100 internal medicine doctors, college says (SCMP, August 2) Hong Kong’s first cancer centre to provide advanced treatments for city’s biggest killer (SCMP, August 7) All European Union eggs to be inspected, Hong Kong food watchdog announces amid safety scare (SCMP, August 15) Summer flu season in Hong Kong is ending, senior health official says (SCMP, August 15) 38 out of 60 shampoos found to contain harmful manufacturing solvent in tests by Hong Kong consumer watchdog (SCMP, August 16) Environment Questions over two-day delay on notice of palm oil spill that left 11 Hong Kong beaches closed (SCMP, August 7) Tracking Hong Kong’s litter trail all the way to Taiwan (SCMP; August 14) Palm oil that spilled onto Hong Kong’s beaches turned into crude gasoline (SCMP, August 18) Culture and education Hong Kong government launches foreign trips aimed at improving teachers (SCMP, August 2) Digital radio in Hong Kong dies with bow out of RTHK channels (SCMP, August 12) Composition of Hong Kong school boards may be reviewed, education No 2 says (SCMP, August 20) Hong Kong and Macau graduates from mainland Chinese universities struggle to stay and find jobs (SCMP, August 21) Outgoing HKU vice-chancellor rejects calls to sack Occupy leader and legal scholar Benny Tai (SCMP, August 31) Macau Is Donald Trump considering Macau casino bid? (SCMP, August 7) People’s Liberation Army in historic deployment to help Macau after Hato (SCMP, August 26) Varia Singapore beats Hong Kong in liveability rankings for first time (SCMP, August 16) Press articles related to Switzerland and Swiss matters 14 missing after massive landslide in Swiss Alps engulfs homes (AFP, SCMP, August 25) Economy + Finance Increase training and pay for Hong Kong aviation technicians or face serious labour shortage, unions warn (SCMP, August 2): Aviation unionists in the city warned that the Hong Kong International Aviation Academy is failing to tackle a looming shortage of airport technicians with the third runway due for completion in 2024. They pointed to a “mismatch” between skill needs and training, saying that the academy offered no courses for technicians despite the growing demand for such jobs. A total of 73,000 people currently work at the airport. Once the HK$141 billion third runway is operational, an additional 50,000 staff will be required by 2030. Unionists also said young people were not willing to become technicians because of the low pay. #Top of the Document Hong Kong leader backs proposal to dump ‘miserly’ fiscal philosophy (SCMP, August 4): Chief Executive Carrie Lam hailed as “constructive” Joseph Yam’s idea that the approach of past administrations had put a drag on economic development and the new government should ramp up spending, even going into deficit if it was in the public interest. Lam also said the provision in the Basic Law on fiscal management should not be interpreted too rigidly. Article 107 requires Hong Kong to “follow the principle of keeping expenditure within the limits of revenues in drawing up its budget” and to “strive to achieve a fiscal balance, avoid deficits”, keeping the budget commensurate with GDP growth. #Top of the Document Tax breaks in store for Hong Kong start-ups as city struggles to stay competitive (SCMP, August 6): Small and medium-sized enterprises in Hong Kong can look forward to more tax incentives as the government tries to counter competition from regional rivals offering lower rates. To ensure the city stops losing young talent to regional rivals such as Singapore, South Korea and mainland China, Chief Executive Carrie Lam, who took up the top job in Hong Kong last month, has put tax reform on her agenda. Her administration is now in the process of formulating two tax policies, which Lam promised in her election manifesto, favouring SMEs and start-ups. The first is a two-tier profits tax system which will lower the rate for the first HK$2 million of corporate profits to 10 per cent, from the current 16.5 per cent. The second proposal, meanwhile, will offer additional tax deductions on expenses related to research and developments, as well as environmental protection, art and design initiatives. #Top of the Document UnionPay ATM withdrawals to come under closer scrutiny in Hong Kong, as they are in Macau (SCMP, August 7): The Hong Kong Monetary Authority (HKMA) has instructed local banks to submit data on cash withdrawals by UnionPay cards throughout the city’s automated teller machine (ATM) network, as the regulator cracks down on unauthorised capital outflow from the mainland. Commercial banks must submit data and documentation regarding the volume and timing of the withdrawals by UnionPay cards for the first six months of 2017 to the regulator by this week, according to a notice cited by the Apple Daily newspaper. An HKMA spokesperson declined to comment. The move, follows a similar step up in enforcement in May by Macau’s monetary authorities, and closes a loophole in China’s capital remittance regulations, that has thus far focused on the ability by companies to transfer money out of the country, said ING Bank NV’s economist Iris Pang. #Top of the Document Hong Kong residents to get equal rights in key areas on the mainland, report states (SCMP, August 9): Beijing is planning to offer Hongkongers the same privileges as their mainland counterparts when studying, working or living across the border, starting with education, finding jobs, and some social benefits. The announcement, in a report issued by the official •Xinhua news agency, coincided with calls by President Xi Jinping to make it “more ­convenient” for Hongkongers to “study, work and live on the mainland” so that the city could take advantage of national development opportunities. It also came as Chief Executive Carrie Lam wrapped up her four-day visit to the capital focusing on forging closer ties.