The Consulate General of Switzerland in Hong Kong - Press review

Hong Kong reboots with 'back to the future' budget as Paul Chan splashes HK$50 billion on hi- tech spending and HK$50 billion on goodies (SCMP, March 1): A budget with a clear eye on the future and massive expenditure to alleviate people's burdens – these were the twin pledges from Financial Secretary Paul Chan as he set out the Hong Kong government's spending blueprint with a record surplus of HK$138 billion (US$17.7 billion) as its centrepiece. A chunk of the bounty, more than HK$50 billion, will be shared with at least 2 million Hongkongers – mostly through targeted tax reliefs, rate waivers and beefed-up allowances. And in an even-handed gesture, he pledged to invest the same amount on hi-tech development to transform the economy. Riding on 3.8 per cent growth last year, Chan's forecast growth this year is as high as 4 per cent, with headline inflation kept at bay at 2.2 per cent. Fiscal reserves would increase to an estimated HK$1.092 trillion by end-March.

Hong Kong outlines grant for first-time corporate bond issuers and plans for green bonds in budget (SCMP, March 1): The Hong Kong government announced a package of measures to develop the city's bond market, including green bonds, in its 2018-19 budget. To attract more first-time corporate issuers from China and the more than 60 countries covered by the Belt and Road Initiative, the government said it would launch a HK$2.5 million (US$319,428) three-year pilot bond grant scheme that will seek to cut issuer expanses by half. The pilot scheme will cover eligible enterprises issuing bonds for the first time in Hong Kong. Meanwhile, to promote green finance, the government also announced it will launch a green bond issuance programme of up to HK$100 billion to provide funding for its green public works projects.

Paul Chan vows to get tough on Hong Kong property developers hoarding flats (SCMP, March 1): Hong Kong's finance chief Paul Chan has vowed to stop developers hoarding flats, as he promised to take the issue of land and housing in the world's most expensive property market to the "highest level of government". Chan said the administration would tackle "undesirable" sales tactics used by developers, such as requiring buyers to bid for flats instead of giving a clear price per square foot. Hong Kong is the world's most expensive city for housing, according to the Demographia International Housing Affordability Survey. Since 2003, private home prices have risen by 445 per cent, and people wait almost five years on the public housing waiting list.

Investment in Hong Kong fintechs more than doubled last year, well ahead of Singapore and Australia (SCMP, March 1): Investment in Hong Kong financial technology (fintech) firms more than doubled last year compared to 2016, as government support and their wider acceptance made companies in the sector more attractive to investors. Amid what has been a global surge in interest, Hong Kong-based fintech investment jumped to US$545.7 million in 2017 from US$215.5 million in 2016 and US$107.5 million in 2015, according to an Accenture analysis of data from CB Insights. Paul Chan, Hong Kong's financial secretary said in his 2018 budget he would allocate HK$500 million (US$63.9 million) to the development of financial services over the next five years, including fintech.

WTO complaint possible if US imposes heavy tariffs on Hong Kong aluminium imports (SCMP, March 5): A formal complaint at the World Trade Organisation would be considered if the US carried out heavy tariffs on aluminium imports from mainland China and Hong Kong, the city's trade minister revealed. "Tariffs should be proportionate and reasonable, even when citing national security," Secretary for Commerce and Economic Development Edward Yau said. "We reserve the right to lodge a formal complaint when necessary." Yau warned that Hong Kong would suffer losses if the mainland and the US were entangled in trade disputes.

How much luxury residential space can US$1m buy across the world? (SCMP, March 8): Monaco remains most expensive city to buy a luxury home for the 11th year running, with US$1m buying a paltry 16 square metres, followed by Hong Kong at 22 square metres, New York at 25 square metres and London at 28 square metres. According to "The Wealth Report 2018" produced by international property consultant Knight Frank, In Singapore, the comparable figure would be 39 square metres, 41 square metres in Geneva and 45 square metres in Paris.

Trade war between China and the US could harm Hong Kong's economy, city NPC official warns (SCMP, March 10): A full-blown trade war between the US and China could harm investor confidence in Hong Kong and deal a blow to the city's stock and capital markets, former US Federal Reserve Bank economist and now deputy to China's legislature David Wong has said. Wong issued the warning after US President Donald Trump signed off on tariffs of 25 per cent on steel and 10 per cent on aluminium imports, raising the stake of a trade war. Hong Kong's Commerce and Economic Development Bureau reacted by saying the government "regrets and disapproves" the US's decision. A spokesman said the bureau has recently filed a formal representation to the US and has registered "grave concern" at the General Council meeting of the World Trade Organisation. The government will study the latest tariff in detail and "continue to pursue the matter on the WTO front and with the US administration with our justified arguments and strong grounds to minimise the impact on our industry".

Hong Kong firms told to embrace financial automation or lose competitive edge (SCMP, March 13): Around 80 per cent of Hong Kong companies are either unaware of automation technologies in finance or have no current plans to adopt them, as companies are yet to figure out where and how to start using the technologies, according to a survey conducted by KPMG China and the Association of Chartered Certified Accountants Hong Kong. A failure to invest in robotic process automation, a form of digital labour, could cost companies their competitive edge, it added. Although sectors like technology, telecommunications and banking and finance were leading in the use of automation, manufacturing was way behind.

Hong Kong's regulator halts initial coin offering, orders Black Cell to return tokens to investors (SCMP, March 20): Hong Kong's securities regulator has ordered a company Black Cell that is raising capital through an initial coin offering to halt the fundraising and return all tokens to investors, an unprecedented move to rein in the runaway market for cryptocurrencies. The Securities and Futures Commission (SFC) said the fundraising exercise may constitute "unauthorised promotional activities and unlicensed regulated activities". The SFC said the offering would qualify as a "collective investment scheme" that would require the regulator's approval to sell or market to the general public. Under such a scheme, the tokens would be regarded as "securities" and would therefore legally fall under the SFC's jurisdiction.

Hong Kong's monetary authority pledges to defend currency peg after lifting lending rate to 2 per cent (SCMP, March 22): The Hong Kong Monetary Authority affirmed that it would defend the currency peg. The HKMA raised the city's base lending rate by 25 basis points to 2 per cent, making the move in lockstep with an overnight increase of a similar magnitude by the US Federal Reserve, to maintain the Hong Kong dollar's peg to the US currency. "This will put an end to the era of Hong Kong's extremely low interest rates for a long time," said Norman Chan, the HKMA chief executive. "An increase in interest rate will help fight inflation in Hong Kong and benefit the economy as a whole." "The Hong Kong dollar is now on the edge of the weak end of the peg," Chan said. "Once the threshold is touched, HKMA will defend the peg by buying the Hong Kong dollar and selling the US dollar."

'Collateral damage to Hong Kong unavoidable' from US-China trade war, city's commerce chief says (SCMP, March 23): Hong Kong's commerce minister Edward Yau said the city would inevitably be hit by a spillover effect from an escalating US-China trade war. He said that it would be difficult to assess the impact until the US rolled out a detailed list of products to be included. The government would closely monitor trade tariffs imposed by the United States and China on each other's goods. "We need to be concerned because both the US and mainland China are our major trading partners ... and there will be a spillover effect on their trading partners," Yau said. "If a 25 per cent tariff is imposed on a large amount of goods ... and the trade war perpetuates, collateral damage to Hong Kong would be unavoidable since we are an entrepôt and there are a lot of direct investments between us." The city would "fight for its rights" in the event of discriminatory trade practices being implemented against it, Yau said.

'Complicated and costly' cash handout scheme criticised by Hong Kong lawmakers (SCMP, March 25): Hong Kong lawmakers from across the political spectrum have criticised the government for coming up with a "complicated and costly" scheme to give over one-third of Hongkongers, or 2.8 million people, a cash handout of up to HK$4,000 (US$510) each. It came after Financial Secretary Paul Chan announced, amid intense political and public pressure, that people who did not benefit from tax rebates and increased allowances in the budget rolled out last month would now get a share of the city's record HK$138 billion surplus. Social welfare and economic experts criticised the out-of-budget handout as undermining the "new fiscal philosophy" to "wisely use [the] accumulated surpluses for the community" promised by Chief Executive Carrie Lam. The money would be given to Hong Kong residents aged 18 years or above, as of December 31 this year, who do not own property, do not receive any government allowances, and need not pay income tax for the financial year ending March 31 this year.

HK$17.2 billion MPF subsidy offered as Hong Kong officials push to ditch controversial offset mechanism (SCMP, March 30): Top officials have started to lobby support for a long-awaited plan to stop Hong Kong employers from dipping into workers' pension funds for severance and long-service payments, with a commitment of HK$17.2 billion (US$2.2 billion) to help ease the burden on small businesses for 12 years. The proposal was put to the business and labour sectors in closed-door meetings as Chief Secretary Matthew Cheung and Secretary for Labour and Welfare Law Chi-kwong tried to woo support from both sectors. However, some business representatives expressed scepticism about the government proposal on scrapping the much-criticised Mandatory Provident Fund (MPF) offsetting mechanism, saying its implementation would be too complicated for small and medium-sized enterprises (SMEs) to handle and after the subsidy period expired they would bear a heavy financial burden. Chief Executive Carrie Lam said on March 27 the offsetting mechanism had been undermining the benefits of retirement protection for employees, defeating "the very purpose of setting up" the scheme.

Pro-democracy bloc suffers another blow as Hong Kong Legco approves more rule book changes for Finance Committee (SCMP, March 2): Hong Kong's Legislative Council approved controversial rule book changes raised by the pro-establishment camp that would further restrict filibustering in the Finance Committee and pave the way for smoother passage of government spending proposals. The move dealt another blow to the pro-democracy bloc, following 24 earlier amendments to the rule book that were passed in December. The amendments will not only apply to the Finance Committee but also to its two subcommittees in public works and establishment, which examine the government's construction works and structures of civil service respectively.

Tough warning to Hong Kong given by top Chinese leader who urges recognition of Beijing's sovereignty (SCMP, March 5): A top Chinese leader set out in no uncertain terms the need for Hongkongers to recognise Beijing's sovereignty over the city, and urged advisers to the mainland to speak up and demolish harmful ideas instead of staying silent and letting them spread. Zhao Leji, the sixth-ranking member in the Communist Party's Politburo Standing Committee and the nation's anti- corruption tsar, gave the advice when he met more than 200 Hong Kong and Macau delegates to the Chinese People's Political Consultative Conference (CPPCC), China's top political advisory body. Zhao also warned that Beijing would not allow anyone to use the autonomy that Hong Kong enjoyed as a cover to infiltrate or sabotage the mainland. Such activities touched upon Beijing's "bottom line", he cautioned.

Premier Li Keqiang declares China's hold over Hong Kong is being strengthened, stops short of warning against independence (SCMP, March 6): Premier Li Keqiang has declared that the authority of the country's constitution and Hong Kong's mini-constitution have been further realised in the city, vowing full support for its integration into developments on the mainland. He also pledged that the central government would fully and accurately implement the "one country, two systems" governing principle in Hong Kong. Li stopped short of warning against calls for independence, a subject he broached last year when such talk was on the rise. Under his recommendation for making "solid progress in the coordinated regional development strategy", he said: "We will unveil and implement the development plan for the Greater Bay Area and promote in all areas mutually beneficial cooperation between the mainland, Hong Kong and Macau."

Hong Kong independence ideas must be suppressed, top China official Wang Huning warns city (SCMP, March 7): Wang Huning, the fifth-ranking member on the Communist Party's powerful Politburo Standing Committee, warned that the idea of independence for Hong Kong must be suppressed, as Beijing would show zero tolerance for such advocacy as well as anything jeopardising the city's mini- constitution and stability. He also urged Hongkongers to strengthen their sense of national identity, promising more initiatives to help them reap the benefits of the Greater Bay Area development project, which seeks to forge an economic powerhouse across Hong Kong, Macau and nine mainland Chinese cities.

Hong Kong to reap more dividends through closer development with China, says Beijing's top man in city (SCMP, March 8): Hong Kong has reaped "great dividends" from two key Chinese policies – and more opportunities are on the way with the city's integration into national development, Beijing's top man in the city said. Wang Zhimin, head of the central government liaison office, said Hong Kong had become such a successful trading, shipping and financial centre in the 1990s by riding on China's "economic reform and opening" and through the "one country, two systems" policy. Chief Executive Carrie Lam, after returning from Beijing from the opening of the annual "two sessions" political meetings, said the government would expedite integration work, and that Premier Li Keqiang had boosted her confidence for doing the job.

'Constitutional order' in Hong Kong maintained, leader of China's legislature says (SCMP, March 12): China's legislature has staunchly maintained "constitutional order" in Hong Kong, its outgoing leader said, joining other top officials in emphasising Beijing's hold over the city. The National People's Congress Standing Committee "has resolutely defended the constitutional order (in Hong Kong and Macau) that has been established by the constitution and the Basic Law," Zhang Dejiang, the NPCSC's chairman said in his final work report. The standing committee has spelt out the "direction" and "basic arrangements" for the city to develop democracy gradually, he said.

Hong Kong democrats to rely on legal appeals after failing to win back Legco veto foothold (SCMP, March 12): Hong Kong's pan-democrats failed to take back the power to veto their rivals' moves, as their disqualified champion Edward Yiu lost the poll to pro-establishment candidate Vincent Cheng and his bid to re-enter the legislature. Pan-democrats Gary Fan and Au Nok-hin won their races for the camp. Pro-establishment candidate Tony Tse won in the architectural, surveying, planning and landscape functional constituency. The pan-democrats must now wait for the results of former lawmakers "Long Hair" Leung Kwok-hung and Lau Siu-lai's appeals against their disqualifications, for any chance to regain their veto power. The by-election was to fill four of the six seats vacated by pro- democracy lawmakers disqualified by the courts for failing to take their oath of office properly in 2016. When polls closed on March 11, 904,000 of 2.1 million registered voters in the four constituencies had cast their ballots, and turnout was 43 per cent. In the 2016 polls, turnout was 58.3 per cent.

Will Hong Kong's pro-democracy camp learn the right lessons from shocking by-election setback? (SCMP, March 13): Kowloon West candidate Edward Yiu's stunning loss in by-election might be blamed on local factors but many in the pro-democracy camp accept it as a wake-up call for them. Until now, the bloc had never lost a Legislative Council by-election as they tended to bag roughly 55 to 60 per cent of votes in direct elections. An analysis of Yiu's results showed he did badly in public housing estates but beat his rival in middle-class areas. Ivan Choy of Chinese University said Yiu's team had focused too much on their online campaign and ditched the practice of more traditional pan-dems to go door-to-door in public housing estates.

Hong Kong's opposition pan-democrats apologise to supporters after Legco by-election defeat (SCMP, March 13): Hong Kong's opposition politicians are picking up the pieces after suffering a crushing setback in Legislative Council by-election, which saw them lose two out of four seats that were theirs to retain and left them with a diminished vote share that reflected a widening rift with their traditional support base. Some 904,000 voters went to the polls and, in a stunning repudiation of the pan-democratic camp, chose Beijing-friendly candidates for two of the seats vacated by pro-democracy lawmakers who were kicked out of the legislature last year for failing to take their oaths of office properly in 2016. The loss marked the first time that pan-democrats squandered a by-election in the city's polling history since its 1997 handover to Chinese sovereignty, and prompted them to make a public apology in front of the media's cameras. It left the pro-establishment bloc, which already has an edge in the functional constituencies, with 17 seats in the geographical constituencies to the pan-democrats' 16. Political observers also noted that pro-establishment lawmakers could take advantage of their election advances to bulldoze controversial policies or laws through Legco.

Passing China joint rail checkpoint bill would breach our vows, Hong Kong lawmakers say (SCMP, March 14): Hong Kong lawmakers said the government was asking the impossible by requesting they pass a bill to station mainland Chinese officers in the city for a rail checkpoint, because by voting for the law they would be breaching their vows to uphold the mini-constitution. In a statement released on March 12, the Hong Kong Bar Association argued the bill had "no constitutional foundation" and could not be enacted "save in contravention of the Basic Law". "The Legislative Council has no authority to enact, and it cannot and may not pass an ordinance that contravenes the Basic Law," it said. Secretary for Justice Teresa Cheng stood firm against those assertions however, insisting the co- location arrangement did not contravene the mini-constitution because Hong Kong enjoyed the autonomy to enact its own laws to meet special social needs.

No need for formal consultation over law against national anthem abuse, says Hong Kong leader (SCMP, March 17): Chief Executive Carrie Lam dismissed calls for a public consultation on a contentious bill designed to curb abuse of the national anthem, urging city residents not to worry about the proposed law. The government unveiled the legislative framework, which would localise the Beijing- imposed national anthem law and make insulting or distorting March of the Volunteers punishable by a maximum fine of HK$50,000 and three years in prison. In a bid to soothe public fears, Lam emphasised that the bill only targeted people who deliberately insult the anthem. She called on the public not to be overly worried about it. She said many people had overreacted to the law, and that was symptomatic of a lack of trust in society.

Xi Jinping vows to strengthen national identity and patriotism in Hong Kong and Macau (SCMP, March 20): President Xi Jinping has vowed to strengthen the national identity and patriotism of the people of Hong Kong and Macau, as Beijing implements its "one country, two systems" governing principle in the two cities "fully and accurately". Speaking at the closing of the National People's Congress' annual session, Xi also pledged to support Hong Kong and Macau's integration into national development strategies, in a reference to the 'Greater Bay Area' project, which aims to turn Hong Kong, Macau and nine mainland cities into one of the world's strongest economic powerhouses. Premier Li Keqiang said separately that Beijing would observe one country, two systems when implementing the bay area plan so that Guangdong, Hong Kong and Macau could benefit each other with their own unique strengths. Li also promised that Beijing would gradually introduce new policies so that Hong Kong people could enjoy "national treatment", or the same treatment as mainland Chinese, as they lived, studied or travelled in the Guangdong cities. The project's outline is expected to be rolled out as early as next month.

By-election winners sworn in to Hong Kong's Legislative Council (SCMP, March 21): The four winners of the recent Hong Kong legislative by-election were sworn in, filling some of the seats vacated by six pro-democracy legislators disqualified for improper oath-taking in 2016. No one made any alterations to their oath this time around. Au Nok-hin said he took the oath with mixed feelings, as his election was triggered by the disqualification saga. He pledged to unite the pro-democracy bloc and "put up a good fight for Hongkongers" as – according to him – Beijing tightened its grip on the city. He is facing a court battle mounted by pro-establishment supporter Wong Tai-hoi, who lodged a judicial review application challenging his candidacy. Wong claimed it was wrong for Au to be allowed to run given that he had once burned a copy of the Basic Law in public.

Hong Kong's new top Basic Law official: the bureaucrat involved in drafting recent amendments to China's constitution (SCMP, March 22): A mainland official involved in the drafting of the recent historic amendments to China's constitution has been appointed to lead the body that advises Beijing on Hong Kong's mini-constitution, the Basic Law. In what is being seen as a move to highlight the importance of the national constitution for Hong Kong and Macau, bureaucrat Shen Chunyao was named by the National People's Congress Standing Committee (NPCSC) as head of both the Basic Law committees of the two cities. Lau Siu-kai, vice-chairman of semi-official think tank the Chinese Association of Hong Kong and Macau Studies, said Shen's ranking and involvement in the constitutional amendments might shed light on the advisory body's areas of focus that Beijing wanted to highlight. "The NPC may devote more attention to work relating to the interpretation of the Basic Law and the constitutionality of local legislation," he said.

Remarks on election ban for those calling for end to 'one-party dictatorship' are not official statement, Beijing envoy says (SCMP, March 25): Beijing's top man in charge of Hong Kong affairs has said a senior local politician's remarks on election eligibility were not "official statements". Zhang Xiaoming, director of the State Council's Hong Kong and Macau Affairs Office, was referring to a warning by Tam Yiu-chung (Hong Kong's sole delegate to China's top legislative body), that anyone calling for an end to "one-party dictatorship" would be at risk of being disqualified from running for local office. Zhang made the comments to a delegation from the Path of Democracy think tank visiting Beijing. Path of Democracy convenor Ronny Tong, who is also a member of the Executive Council, said that under the principle of "one country, two systems" Hong Kong had its own laws to regulate local elections, adding he did not see any reason at all that anyone needed to support the Chinese Communist Party to run in elections. "However, there could be huge constitutional problems if Hongkongers running for elections do not respect the country's governance system," he said.

Is Hong Kong 'ceding' land to mainland China? Fears grow after revelation joint checkpoint at rail terminus will not operate under lease (SCMP, March 28): An area for mainland Chinese officials to enforce national laws at a rail terminus in Hong Kong will not operate under a lease agreement, as previously thought, sparking questions on whether the city was "ceding" land to the central government. Secretary for Transport and Housing Frank Chan told lawmakers there would be a contract governing Beijing's use of the area, but suggested it would not have a lease clause. "The acquisition of the right to use areas of the mainland port area, including conditions such as duration and fees ... will be provided in a contract to be entered into by the two sides," Chan said. "This is a very flexible way of dealing with the matter. We should not haggle over whether there will be a lease."

Hong Kong government 'shocked' by Occupy leader Benny Tai's independence comments at Taiwan seminar (SCMP, March 30): A liberal academic who was a key leader of the 2014 Occupy protests has earned an unusually strong public rebuke from the Hong Kong government for suggesting in Taiwan that the city could "consider becoming an independent state". "The Hong Kong Special Administrative Region Government is shocked by the remarks made by a university teaching staff member that Hong Kong could consider becoming an independent state, and strongly condemns such remarks," a spokesman said. Any advocacy of separating Hong Kong from China would go against the "one country, two systems" principle and the city's mini-constitution, the Basic Law, the spokesman warned. But University of Hong Kong law professor Benny Tai hit back at the administration, accusing it of attacking free speech and insisting he had only suggested independence could be one of the options for Hong Kong some day when China became a democratic country. The political storm stems from Tai's remarks at a seminar in Taipei organised by the Taiwan Youth Anti-Communist Corps.

China tells UK to back off after Boris Johnson warns of Beijing's increasing influence over Hong Kong (SCMP, March 16): China has told the UK to back off after British foreign secretary Boris Johnson doubled down on concerns that the "one country, two systems" governing formula for Hong Kong was coming under increasing pressure. Beijing's foreign ministry spokesman Lu Kang said that Hong Kong affairs were purely China's affairs, and accused Britain of making "irresponsible remarks" by releasing its latest six-monthly report on the city. In his latest six-monthly report to the UK parliament, Boris Johnson cited cases in the second half of 2017 that were seen as a threat to the principle, such as a British activist who was denied entry into Hong Kong, and the ousting of lawmakers over an oath-taking saga in the city's legislature. Responding to media inquiries, a Hong Kong government spokesman said: "Since the return to the Motherland, the HKSAR has been exercising a high degree of autonomy and 'Hong Kong people administering Hong Kong' in strict accordance with the Basic Law. Foreign governments should not interfere in any form in the internal affairs of the HKSAR."

Hong Kong will not lift post-Fukushima ban on some Japanese food (SCMP, March 26): Hong Kong leader Carrie Lam rejected for the time being Tokyo's official request that the city lift restrictions on Japanese food imports brought in after the Fukushima nuclear disaster, citing public safety. The chief executive also reaffirmed that the city had been strictly enforcing sanctions against North Korea, during her meeting with Japanese foreign minister Taro Kono. Kono was the first Japanese foreign minister to visit Hong Kong for bilateral matters since the former British colony returned to Chinese rule in 1997. Hong Kong is the largest export destination of Japanese agricultural, forestry and fishery products. UN reports in recent weeks said Hong Kong companies were being used as fronts for North Korean businesses, to help it circumvent UN sanctions. "Mrs Lam also reiterated to Mr Kono that Hong Kong has all along been strictly implementing the sanction measures decided by the United Nations Security Council on North Korea, and that Hong Kong will stay highly vigilant about activities and suspected cases that may violate the sanctions," a statement issued by Lam's office read.

'Long Hair' Leung Kwok-hung protected from prosecution in folder snatching case, Hong Kong court rules (SCMP, March 6): Former opposition lawmaker "Long Hair" Leung Kwok-hung may walk free from a contempt of Legislative Council charge over his snatching of documents from a government official, after a Hong Kong court ruled that lawmakers are protected from such prosecution. Acting principal magistrate Ada Yim said: "The absolute privilege of free speech and debate enjoyed by Legco applies to individual members, as Legco can only function through its members and any attempt to limit the privilege by an offence of contempt might cause a chilling effect and should be taken cautiously." She also noted that Legco is "well capable to control and penalise, if it so wishes, any disturbance created by its members during the proceedings to uphold its dignity, where the situation calls for it, without external assistance".

High-profile Hong Kong figures hit out at judge in Donald Tsang bribery trial (SCMP, March 8): An unexpected court row raged as prominent figures hit back at a judge who had denounced the appearance of high-profile personalities at the trial of former Hong Kong leader Donald Tsang as an "undesirable" public relations stunt. Tsang himself broke his silence to express gratitude to his supporters, counting among them former ministers and bureaucrats. One of them, Wong Yan-lung, issued a statement challenging Mr Justice Andrew Chan's observation as being "factually incorrect". Wong was secretary for justice during Tsang's term as chief executive between 2005 and 2012. Former financial secretary John Tsang, through a spokesman, joined the chorus by saying his attendance was solely out of concern for a friend – which he described as a "universal value". University of Hong Kong law scholar Johannes Chan called Mr Justice Andrew Chan's comment "unfair", "unwarranted" and "totally unsubstantiated", saying it was not backed by evidence.

Taiwan to ask Hong Kong's help investigating teenager wanted for girlfriend's murder (SCMP, March 16): Taiwan's government said it wanted Hong Kong's help investigating the murder of a woman from the city, allegedly by her teenage boyfriend, while the couple was in Taipei last month. Deputy Justice Minister Chen Ming-tang said that although there is no extradition deal between Taiwan and Hong Kong, his ministry would try to get an agreement from the Hong Kong side to ease the investigation and any eventual punishment of 19-year-old Chan Tong-kai. Chan was suspected of killing his 20-year- old girlfriend Poon Hiu-wing, also from Hong Kong, during their vacation in Taiwan, police there said. The victim and suspect being from Hong Kong has made the situation difficult for Taiwanese prosecutors, especially with Chan no longer in Taiwan. With the lack of extradition arrangements, legal experts in both places have said there was little hope of the suspect returning to Taiwan for investigation or prosecution.

Travellers to Hong Kong must declare cash sums larger than HK$120,000 under new law to combat dirty money (SCMP, March 22): Travellers in and out of Hong Kong will need to declare if they are carrying more than HK$120,000 (US$15,300) in cash, after a new law to tackle dirty money comes into force in mid-July. The Security Bureau announced that the Cross-boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance (Commencement) Notice and the Cross- boundary Movement of Physical Currency and Bearer Negotiable Instruments Ordinance (Amendment of Schedule 1) Notice 2018 will be published in the gazette on March 23 for tabling at the Legislative Council on March 28. The ordinance will take effect from July 16. Failure to declare could lead to criminal prosecution with a maximum penalty of two years in prison and a fine of HK$500,000. Since 1991, Hong Kong has been a member of the Financial Action Task Force, an inter-governmental body that sets international standards on anti-money-laundering measures and curbs on terrorist financing.

Hong Kong privacy watchdog demands answers from Facebook on data security after Cambridge Analytica scandal (SCMP, March 29): Hong Kong's privacy watchdog is seeking answers from Facebook on what it is doing to protect user information in the wake of a global data harvesting scandal, and how much its 5 million active users in the city have been affected. Privacy Commissioner Stephen Wong said the social media giant would have to identify any loopholes, and failure to plug them would warrant legal action by his office. His office would closely follow investigations launched by United States and British authorities, as well as similar inquiries made by other privacy commissioners around the world. "Due to widespread concern and the vast number of local user accounts, we hope to speed up our inquiry and hopefully complete it within one to two months," he said. Wong would not rule out probes into other major technology companies' handling of personal data in the city, if necessary.

Medical insurance scheme gets fresh push with tax breaks for Hong Kong workers (SCMP, March 1): People are being encouraged to join a long-awaited voluntary medical insurance scheme (which aims to encourage more people to use private health services) with tax deductions of up to HK$8,000 (US$1,025) on premiums per insured person. Details of the tax incentive came as finance chief Paul Chan announced the government had also earmarked HK$300 billion to cover the second 10-year hospital development plan of the Hospital Authority, which manages the city's public hospitals. The money would also be used to improve the Department of Health's clinics and upgrade the city's health care teaching facilities. Recurrent expenditure on health will be HK$71.2 billion in the latest budget, including HK$61.5 billion for the authority. Shortage of flu shots forces Hong Kong officials to order vaccine meant for southern hemisphere (SCMP, March 9): A vaccine shortage has driven Hong Kong health officials to bulk buy flu shots intended for the southern hemisphere for the first time, but a medical expert said the move may be of little use. Secretary for Food and Health Sophia Chan said that the Centre for Health Protection had signed a contract with pharmaceutical companies to buy 20,000 vaccines, which would arrive in mid- April. Medical Association president Gabriel Choi said the April shipment may go to waste. "Probably no one will go for the vaccine, by April it may no longer be high season," he said.

Fewer smokers in Hong Kong but among those who light up, more are turning to e-cigarettes, survey reveals (SCMP, March 22): Even as the population of regular smokers in Hong Kong has declined over the years to about 10 per cent, the use of electronic smoking devices among them is on an alarming upwards trend, according to latest government figures. Those above the age of 15 using e- cigarettes and heat-not-burn tobacco products rose almost sixfold in two years, from below 1,000 in 2015 to 5,700 last year, the Census and Statistics Department found when it interviewed 10,000 households in the second half of last year. When the Food and Health Bureau commissioned a survey of primary and secondary schools between November 2016 and last June, it found 29,380 teens had tried e-cigarettes before, with 2,770 still using them. The Department of Health's Tobacco Control Office said the government was "very concerned" about the overall growth in e-cigarette use. Tuberculosis in Hong Kong falls to lowest level in 70 years, but health officials urge vigilance (SCMP, March 25): Tuberculosis in Hong Kong has dropped to its lowest level since 1947, with 40 fewer cases reported last year than the year before, but the health authority urged the public to stay vigilant due to the city's risk factors and ageing population. Statistics from the Health Department showed that in 2017 the number of reported cases dropped for the fifth consecutive year, to 4,306, and the report rate per 100,000 people declined to 58.3, the lowest over the past 70 years for both. In total, 162 people died of tuberculosis in Hong Kong last year – two more than in 2016.

Hong Kong has sped up a tax break for green buildings, but environmentalists are unimpressed (SCMP, March 2): In the 2018-19 financial year, tax refunds for cash spent on energy efficient building installations and renewable energy devices can be claimed in the year of purchase, rather than over the following five years, as currently. The quicker pay-off, the government said, would make the investment more appealing to companies. Chan also announced another HK$800 million this year to promote the installation of renewable energy facilities at government buildings, venues and community facilities. Frances Yeung, senior campaigner at Greenpeace East Asia, said: "It's better than nothing but it won't really do much to spur renewable energy. The feed-in tariffs will be the crucial change we are waiting for. It is the only thing that can help shorten the return periods of renewable energy investment." Feed- in tariffs allow electricity produced renewably by businesses and homes to be sold at a rate higher than the normal electricity tariff rate, to cover the cost of their investments.

Expect more chaos over waste paper collection, Hong Kong recyclers against 'unfair' mainland import policy warn (SCMP, March 11): Waste paper recyclers in Hong Kong warned of chaos if the city's government did not help them fight for exemption from an "unfair" mainland policy regulating waste imports. Jacky Lau, director of the Recycle Materials and Re-production Business General Association, expressed fears that without long-term solutions, the city would continue to face regular logjams of unexported waste paper. The mainland government began tightening waste import regulations last year, pledging to ban 24 types of polluting "foreign rubbish" including unsorted waste paper and consumer plastic waste from this year. Mainland waste paper imports – and the permits allocated to recycling plants there – have dropped by 85 per cent since the announcement. "China treats [Hong Kong and Macau] as territories outside its borders. I agree we should compete with others but right now it's unfair. European and US exporters have government subsidies and support," Lau said.

Earth Hour challenge: can Hongkongers reduce their energy usage by just 1 per cent for the coming year? (SCMP, March 25): Electricity usage across the city last year jumped to an all-time high. Environmentalists believed Earth Hour, which took place in Hong Kong for the 10th time, was more important than ever. WWF-Hong Kong chairman Edward Ho, said city residents should aim to cut their energy usage by 1 per cent for the next 12 months. This could be done through efforts such as using air conditioners less often and using more energy-efficient household appliances. Despite the green call for sustainable energy consumption in Hong Kong, official data showed it would be difficult for the city to power down its need for electricity. The city used up 162,431 terajoules in 2017 – a rise of 8.7 per cent since the first Earth Hour in 2009.

'Fewer Hong Kong students will head to mainland China and Taiwan in next few years', local charity predicts (SCMP, March 4): The number of Hongkongers opting to study in Taiwan or mainland China will probably shrink over the next few years, a local educational NGO said. Hok Yau Club, a charity that gives educational guidance, said students were concerned that degrees from either place might not be well recognised upon their return to Hong Kong. As the number of secondary school students will probably drop in the next few years, more local students will stay and continue their studies at home due to reduced competition. The HK$30,000 subsidy that the local government introduced last year for students enrolling in self-funded degree programmes has also made more students stay, he said. The government estimated that about 13,000 students would benefit from the subsidy each year.

New Chinese University of Hong Kong chief denies coming under any pressure from Beijing officials (SCMP, March 7): Rocky Tuan, the new head of the Chinese University of Hong Kong, insisted he had come under no pressure from central government officials following a recent meeting with Beijing's liaison office. That came amid a backdrop of growing fear in Hong Kong about government influence in academia. Tuan said he would continue to communicate with all stakeholders in Hong Kong society, and that included the liaison office. He reiterated that university students should exercise their freedom of speech in a rational and peaceful manner.

Chinese language rule eased for more Hong Kong government jobs so ethnic minorities will qualify (SCMP, March 12): Chinese language requirements for another 22 types of Hong Kong government jobs have been lowered to give ethnic minorities a better chance of qualifying for those positions, chief secretary Matthew Cheung said. While this means 53 of the over 400 categories of civil service positions are now more accessible to non-Chinese permanent residents, welfare organisations said that to boost their career prospects in the long-term, ethnic minorities needed better language training from a young age. In the 2016 by-census, excluding foreign domestic helpers, about 3.8 per cent of the city's population or 254,700 people were classified as ethnic minorities. Many struggle with language proficiency – they may speak Cantonese but cannot read or write traditional Chinese characters – and this affects their ability to go to university and get a job.

Hong Kong schools and parents could be surveyed on excessive test drilling, education chief says (SCMP, March 17): Hong Kong schools and parents could be surveyed as part of government efforts to monitor whether pupils are still being subjected to excessive drilling after officials announced new arrangements for a controversial competency test. After a long-awaited review of the test ended, authorities announced that only 10 per cent of randomly selected pupils in each local public school would be required to participate. The Primary Three Territory-wide System Assessment (TSA) assesses English, Chinese and maths abilities in an exam administered in May and June. It is associated with teachers drilling pupils and was widely believed that the bureau used the data to rank schools. The bureau has denied such claims.

Fees at ESF schools in Hong Kong could rise by as much as 25 per cent next year (SCMP, March 28): The biggest group of international schools catering to English-speaking children has proposed fee increases of up to 24.7 per cent as the loss of its government •subvention affects Primary Three level. This means that the English Schools Foundation could charge parents of Year Three pupils HK$111,200 for the school year starting in August, compared with HK$89,200 this year. CEO Belinda Greer explained in a letter to parents that HK$17,300 of the planned increase was due to the loss of the subvention, which started being phased out two years ago and will last for a period of 13 years. The ESF runs 22 international schools for about 17,700 pupils from more than 60 nationalities.

Air pollution keeps Hong Kong in 28th place in expat liveability ranking, while Singapore takes top spot (SCMP, March 14): Hong Kong came in 28th in a global ranking of the most liveable cities for Asian expatriates – retaining roughly the same spot for three straight years – due to its failure to address poor air quality and the greater risk of infectious diseases spreading across its densely-packed population. Singapore retained the top spot for the 16th year running, with Australian and Japanese cities close behind, according to the survey of over 470 locations by human resources consultancy ECA International. Shanghai and Beijing were placed at 114th and 134th. To produce the annual survey, researchers measure the quality of life for expatriates in locations around the world, assessing factors such as climate, health care, housing, infrastructure, political tension and air quality.

Why do an apprenticeship? Vocational training pros and cons (SCMP, March 3): Last year, Hong Kong's Vocational Training Council (VTC) urged local companies to take on more apprentices to support a drive to promote vocational training among young people. Switzerland, for example, which has one of Europe's lowest youth unemployment rates, has a long history of combining classroom learning with on- the-job experience and two-thirds of students opt for such vocational training. It is clearly a system that works well for the Swiss, an affluent country with a labour market the World Economic Forum described last year as "the best functioning globally". However, apprenticeships are not viewed so positively everywhere in the world. The Chinese, on the other hand, have a long history of apprenticeships. Hong Kong's VTC helps local employers provide structured, on-the-job training, and supports apprentices in studying vocational education programmes. Modelled on successful Swiss practises, the scheme is a collaborative effort between the government, industry and the VTC. But even with the best will in the world, "there remains entrenched a bias among some in the community in favour of traditional academic pursuits," the VTC observes. In a bid to counter this, the VTC established a task force to promote the value of vocational education, demonstrate that it is "an attractive pathway" to a career and "help tackle the entrenched perception that a vocational training is a second choice".

Time Bank to offer mutual help (translation from Skypost, a local Chinese press, March 9): Hong Kong is facing an ageing problem. Switzerland introduced the concept of "time bank" and tried it in St. Gallen as a pilot project in 2012. Retired volunteers will put the number of hours spent on caring for the elderly in the bank. When they need for care in the future, others will take care of them in return. However, local scholars pointed out that it might be difficult to launch this plan in Hong Kong. Hong Kong's environment and policies change rapidly. Some elderly people may even change their residence location while there are fewer changes in foreign countries. The concept of mutual help is rather weak in Hong Kong. Neighbourhood relation is generally not close and gap between people is comparatively huge.

This is a review of the Hong Kong media and does not necessarly represent the opinion of the Consulate General of Switzerland. The Consulate General of Switzerland in Hong Kong does not bear any responsibility for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which might be incomplete or incorrect, will therefore be rejected.

31.03.2018