Hong Kong launches 2-year effort to reverse local workforce declines

Oct. 19 (UPI) -- Hong Kong Chief Executive John Lee said Wednesday the city will spend $3.8 billion to draw more people and more business investment in the midst of a "brain drain" that has shrunk its population of workers.

In a three-hour policy address, Lee summarized the city's broad policy initiatives across a range of issues, prioritizing housing and attracting more people to shore up its workforce.

"Over the past two years, the local workforce shrank by about 140, 000," Lee said. "Apart from actively nurturing and retaining local talents, the government will proactively trawl the world for talents."

According to a transcript of Lee's speech, Hong Kong's Top Talent Pass will give eligible people two years "for exploring opportunities in Hong Kong."

The pass will be for people who earn an annual salary of roughly $318, 469 or more and graduated from the top 100 universities around the world with at least three years of work experience over the past five years.

"Individuals who graduated from the world's top 100 universities in the past five years and have yet to fulfill the work experience requirement will also be eligible, subject to an annual quota of 10,000," Lee said in his policy address.

Hong Kong will also suspend the annual quota under the city's Quality Migrant Admission plan for two years and "improve the approval process to attract more world-class talents to relocate to Hong Kong."

Lee's wide-ranging first policy speech as chief executive highlighted housing as the top priority of the Hong Kong government.

"Solving the housing problem tops the agenda of the current-term government," Lee said. "To deal with the problem of inadequate accommodation including sub-divided flats, we need breakthroughs in housing supply and solutions to address the long-term problem of housing shortage."

Lee said the demand for housing in Hong Kong over the next 10 years will be about 301,000 housing units. He said only about a third of the units will be built during the first five-year period with the remaining two-thirds expected to be finished in the second five-year period.

"We must overcome the constraints to create supply and address short-term public housing shortage and ensure a steady private housing supply at the same time," Lee said. "We will enhance quantity, speed, efficiency and quality in land production, staying on top of things and putting in place a long-term plan to steadily increase supply."

Lee said Hong Kong is a vital gateway connecting mainland China with world markets and the city must aggressively compete to maintain that status as it grows.

"Hong Kong is one of the most competitive economies in the world. It also serves as an important gateway connecting the Mainland with global markets, " Lee said in his policy address. "We must be more proactive and aggressive in 'competing for enterprises' and 'competing for talents.'"