Israel and Syria agree to ceasefire, says U.S. ambassador to Türkiye
The U.S. ambassador to Türkiye says Israel and Syria have reached a ceasefire deal supported by Türkiye, Jordan, and regional actors after cross-bor...
In a bold bid to restore fiscal balance amid a widening budget deficit, Hong Kong’s government has unveiled a sweeping plan that includes cutting 10,000 civil service jobs and launching a major push into artificial intelligence.
The measures were detailed by Financial Secretary Paul Chan in the city’s annual budget announcement.
Chan stated that the job cuts - amounting to a reduction of 2% of the civil service each year for the next two years - will be implemented by April 2027. In tandem with freezing public sector salaries this year, these steps are designed to achieve a cumulative 7% reduction in public expenditure by the fiscal year ending March 31, 2028. “It gives us a clear pathway towards the goal of restoring fiscal balance in the operating account, in a planned and progressive manner,” Chan said.
The decision comes on the heels of a sharp decline in revenue from land sales, which has left the deficit at HK$87.2 billion—nearly double the previously forecast HK$48.1 billion. Traditionally, land sales have contributed more than 20% to the government’s coffers, but that figure has slipped to around 5% in recent years.
In a parallel effort to diversify its economic base and reduce reliance on traditional revenue sources, Hong Kong is set to make a significant foray into artificial intelligence. Chan announced an allocation of HK$1 billion for the creation of an AI research and development institute, aligning with Beijing’s broader push toward self-reliance in high technology sectors such as robotics and AI.
Some market analysts have welcomed these moves. The Hang Seng Index surged 3%, with both the property and tech sub-indices rising over 3% and 4%, respectively, as investors reacted positively to the government’s dual strategy of fiscal consolidation and technological innovation.
However, observers remain cautious. William Chan, a partner at Grant Thornton Hong Kong, urged the government to undertake a comprehensive tax base expansion study to address deeper structural challenges in Hong Kong’s strained finances. “While the city's fiscal reserves provide a buffer, the escalating deficit demands immediate and strategic actions,” he said.
Hong Kong’s small, open economy faces significant headwinds from global economic uncertainty, geopolitical tensions, and a weak property market. External pressures, including China’s economic slowdown and heightened trade tensions between China and the U.S. over tariffs, continue to impact the city. The government has also announced that it will not put any commercial sites on sale in the coming year due to high office vacancy rates and ample future supply, and it may consider rezoning some commercial sites to residential areas.
With fiscal reserves now at HK$647.3 billion - down from HK$734.6 billion at the end of March 2024 - the government’s measures mark a critical attempt to lay a sustainable fiscal foundation for future development, while leveraging new technologies to drive economic growth in an increasingly uncertain international environment.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
China and the Association of Southeast Asian Nations will send an upgraded ‘version 3.0’ free-trade agreement to their heads of government for approval in October, Chinese Foreign Minister Wang Yi said on Saturday after regional talks in Kuala Lumpur.
Germany's export slump since 2021 is largely driven by deep-rooted competitiveness issues, the Bundesbank warned in its latest report, calling for urgent structural reforms.
Israeli researchers have unveiled an artificial intelligence tool that can determine a person’s true biological age from tiny DNA samples with remarkable precision.
Two Harry Potter actresses, Emma Watson and Zoe Wanamaker, have each received a six-month driving ban after separate speeding offences, both sentenced on the same day at a Buckinghamshire court.
Netflix has used generative artificial intelligence to produce a visual effects scene in an original series for the first time, marking a new step for the streaming platform.
Elon Musk’s xAI chatbot Grok has come under global scrutiny after users reported it using offensive language. It prompted warnings from experts that human intervention in its responses proves the need for a global AI ethical framework.
Major American corporations unveiled over $90 billion in new investments focused on AI and energy during the Energy and Innovation Summit at Carnegie Mellon University on Tuesday. The announcements come as President Donald Trump pushes to cement U.S. leadership in the booming tech and energy sectors
Nvidia has received approval from the U.S. government to sell its advanced H20 AI chips to China, CEO Jensen Huang announced.
Apple and mining company MP Materials announced a joint $500 million investment to develop a rare earth magnet recycling facility, with plans to bolster U.S.-based production and reduce reliance on China.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment