Speech by the Chief Executive in delivering “The Chief Executive’s 2018 Policy Address” to the Legislative Council
27. Our economic development requires land as well as adequate manpower resources. As the current 2.8% unemployment rate in Hong Kong is the lowest in more than 20 years, employers of many sectors have expressed difficulties in staff recruitment. Labour force is an important asset to the development of Hong Kong. It is our top priority to improve our labour welfare in order to maintain the competitiveness of Hong Kong enterprises and enhance employees’ productivity.
28. I present in this Policy Address a series of labour-related policy initiatives with a view to fostering good labour relations and sharing the fruits of economic growth with all walks of life.
29. The first initiative concerns the abolition of the “offsetting” arrangement under the MPF Scheme, which has beleaguered wage earners for years. Having carefully considered the views of various parties, the Government has decided to further enhance its support for employers. We will extend the period of the second-tier subsidy to 25 years. Together with the 12-year first-tier subsidy, the financial commitment of the entire government subsidy scheme will be significantly increased to $29.3 billion. I believe that the new arrangement can reduce the impact of abolishing the “offsetting” arrangement on micro, small and medium-sized enterprises. Our target is to secure the passage of the enabling legislation by the LegCo within the current term of the Government (i.e. by 2022), and implement the abolition of “offsetting” arrangement two years after the passage of the legislative amendments.
