Handover Day: Nat. security will safeguard city's development amid global uncertainty, leader John Lee says
'High-level security will safeguard high-quality development,' Lee said in a Cantonese speech delivered to mark the Handover anniversary. 'We will steadfastly safeguard national security and seize upon national opportunities under the One Country, Two Systems framework.'
The chief executive also pledged further reform and to expedite the development of the Northern Metropolis. The megaproject will span about one third of Hong Kong's border territory with neighbouring Shenzhen. Although a key scheme for the city's integration with mainland China, environmental groups have called for better protection of surrounding wetlands.
'Result-oriented' government
Tuesday marked 28 years since Hong Kong was handed over from Britain to China after over 150 years of colonial rule. It also marked three years since Lee's administration assumed office.
Following a flag-raising ceremony at Wan Chai's Golden Bauhinia Square, Lee delivered his annual speech to mark the anniversary and to review his government's policies.
Lee hailed the formation of a 'result-oriented' government, which passed the city's second, homegrown security law – known locally as Article 23 of the Basic Law – last year. 'We have rebuilt a safe Hong Kong,' he said.
Separate from the 2020 Beijing-enacted security law, the homegrown Safeguarding National Security Ordinance targets treason, insurrection, sabotage, external interference, sedition, theft of state secrets and espionage. It allows for pre-charge detention of up to 16 days, and suspects' access to lawyers may be restricted, with penalties involving up to life in prison. Article 23 was shelved in 2003 amid mass protests, remaining taboo for years. But, on March 23, 2024, it was enacted having been fast-tracked and unanimously approved at the city's opposition-free legislature.
The law has been criticised by rights NGOs, Western states and the UN as vague, broad and 'regressive.' Authorities, however, cited perceived foreign interference and a constitutional duty to 'close loopholes' after the 2019 protests and unrest.
Lee also said that the average waiting time for public housing had been reduced from 6.1 years to 5.3 years, adding that the authorities had recovered about 8,700 public housing units in a crackdown against abuse.
He said the reclaimed flats amounted to building 11 new public housing blocks.
Hong Kong's economy returned to growth after the Covid pandemic, while monthly household income rose HK$3,000, Lee said.
The city also saw the arrival of about 210,000 professionals through various talent schemes as well as 84 'strategic enterprises from frontier technological industries' during Lee's administration, he said.
Lee said his administration would continue to improve people's livelihood in areas such as housing, health, education and welfare.
The city's GDP grew by 3.1 per cent in the first quarter of 2025 compared to the same period last year, though the city is battling a HK$87.2 billion deficit with unemployment rising to 3.5 per cent for the March-to-May period, up from 3.4 per cent between February and April.
Chief Executive John Lee's July 1 speech in full – click to view.
Distinguished guests, fellow citizens,
Today marks the 28th anniversary of the establishment of the Hong Kong Special Administrative Region (HKSAR) of the People's Republic of China and the third anniversary of the current term of the Government. Over these three years, the Government has forged ahead with reforms to build a safe and stable Hong Kong, and striven to develop the economy and improve people's livelihood. Our efforts are gradually delivering results.
I have changed the culture of the Government and formed a 'result-oriented' Government. We have fulfilled the constitutional duty by enacting the local legislation for Article 23 of the Basic Law, a historic task long envisioned by previous terms of the Government but unrealised until now. We have rebuilt a safe Hong Kong. This year, Hong Kong is ranked seventh globally in the safety index.
The Government has spared no efforts in addressing land and housing issues. The waiting time for public housing has been shortened by about nine and a half months, from 6.1 years to 5.3 years. In our combat against the abuse of public rental housing resources, another 8 700 or so housing units have been recovered, equivalent to about 11 public housing blocks and a saving of around $8.7 billion in construction costs. We have acted swiftly to build Light Public Housing for intake by over 9 500 households within this year, relieving the imminent housing needs of more than 9 500 families.
Since we assumed office, Hong Kong's economy has shifted from negative to positive growth. Median monthly household income during the period has risen by $3,000, an increase of over 11 per cent. We attach great importance on labour rights. The abolition of the Mandatory Provident Fund offsetting arrangement has taken effect, and the review cycle of the Statutory Minimum Wage has now been revised from every two years to every year.
We have strengthened mutual market access, relaxed the listing requirements for biotechnology and specialist technology companies, established a licensing regime for stablecoin and simplified listing procedures, thereby enhancing the competitiveness of the financial sector. Hong Kong has climbed up one place in its ranking as a financial centre and secured the third place globally.
We have endeavoured to trawl for talent, compete for enterprises, and attract companies and investment to Hong Kong. Over 210 000 professionals, top talent and quality migrants have arrived in Hong Kong, boosting the city's competitiveness. We have attracted 84 strategic enterprises from frontier technological industries to Hong Kong, bringing in investment amounting to some $50 billion and creating over 20 000 job opportunities. We have simplified the regime for company re-domiciliation, with two major global insurance companies readily expressing their interest in re-domiciling to Hong Kong. Hong Kong's global position in the World Competitiveness Yearbook has improved for two consecutive years, rising from the seventh to the third place. For World Talent Ranking, Hong Kong has returned to the top ten, climbing up seven places to the ninth position.
Amid economic restructuring, Hong Kong is faced with challenges as well as opportunities. With the advantages of the 'one country, two systems' principle, the challenges we face would be outweighed by the opportunities available to us. Looking ahead, our major tasks will cover three areas:
First, to safeguard high-quality development with high-level security. We will actively co-ordinate the coherence between security and development. Under the 'one country, two systems' principle, Hong Kong will remain steadfast in maintaining national security, fully seize national opportunities and proactively integrate into the overall national development, with a view to fostering economic growth and development while assisting enterprises in upgrading their operations and expanding domestic and overseas sales markets. We will deepen international exchanges and co-operation, explore new markets and opportunities, bolster the provision of extensive supply chain services, expand and strengthen regional trade with the aim of offsetting the risk of over-reliance on a single market in business trade. In addition to dedicating our efforts to the development of innovation and technology and expanding digital trade and supporting the development of local enterprises, we will introduce new technologies and industries, and continue to compete for talent and enterprises, further securing our position as an international financial, shipping and trade centre.
Second, to speed up the development of the Northern Metropolis. The Northern Metropolis, which takes up around one-third of Hong Kong's area and will later accommodate one-third of our population, is a new engine for the development of Hong Kong. By introducing new concepts and new methods, removing potential barriers and leveraging market forces, we aim to enhance the speed and efficiency of developing the Northern Metropolis, the San Tin Technopole, and the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone. With a focus on industry development and innovative technology, our goal is to attract scientific research talent from around the world and concentrate innovation resources, in order to promote the establishment of Hong Kong as a hub for high-calibre talent and drive the overall development of Hong Kong.
As a Chinese saying goes, 'Is there anything too hard in the world? With determined efforts, a hard task becomes easy; otherwise, an easy job may become difficult'. We would rather be reformers who rise to challenges than become complacent idlers. Amid an ever‑changing geopolitical landscape and constantly increasing uncertainties, Hong Kong is able to showcase exactly to the world the certainties of safety, stability and development opportunities. These are precisely what the world needs and seeks. Hong Kong is a place where national and global opportunities converge. As long as we are determined to fully seize the opportunities, keep enhancing our value and competiveness, undertake reforms for progress and foster innovation, I am confident the wisdom and experience of the people of Hong Kong will help our Pearl of the Orient shine brighter than ever on the world stage! Thank you.
With the Northern Metropolis as the new engine for growth and adopting an industry-oriented approach, we will align with national development strategies, seizing, in particular, the opportunities brought about by the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative.
No less important, Hong Kong will reinforce its advantages as a global city, maintaining its high degree of internationalisation. We will strengthen regional collaboration, targeting such markets as the Association of Southeast Asian Nations (ASEAN) and the Middle East. We will, as well, strive for accession to the Regional Comprehensive Economic Partnership (RCEP) and increase our links with Europe and other western markets, thereby serving well as an important node of the national and international dual circulation, creating new opportunities and fresh impetus.
Distinguished guests, fellow citizens, there is a Chinese saying that things are born out of planning and completed in practice. While there are both opportunities and challenges for Hong Kong today, our opportunities decidedly outnumber the challenges. The Government will bravely shoulder its responsibilities and deliver good results. During this economic transition, we will unite and lead society in seeking innovation. We will strive for excellence and succeed. We should have the big picture in mind, seeing the forest as well as the trees. We must stand up high and look far ahead, dealing with issues from the perspective of the overall development of the country and the world. We must continue to adopt innovative thinking, bottom-line thinking and a result-oriented approach, enhancing speed and efficiency, proactively seizing opportunities and capitalising on our strengths for the benefit of our community.
Distinguished guests, fellow citizens, good news for Hong Kong comes one after another. On this festive day, I have more good news. Hong Kong will soon welcome two new family members: a pair of giant pandas.
I am deeply grateful to the Central Government for its care and support for Hong Kong, and for considering my proposal of sending us a pair of giant pandas. We will start the preparation work immediately to receive the giant pandas. They will arrive in Hong Kong in a few months and bring us amusement and happiness.
Fellow citizens, we are all part of the Hong Kong family. Let's stand united and scale new heights for Hong Kong together!
Thank you.
'We would rather be reformers who rise to challenges than become complacent idlers,' he said.
'Amid an ever‑changing geopolitical landscape and constantly increasing uncertainties, Hong Kong is able to showcase exactly to the world the certainties of safety, stability and development opportunities. These are precisely what the world needs and seeks,' he added.
Honour list
Lee's administration also unveiled 427 awards in the annual honours list on Tuesday, including for nine government officials involved in the city's national security efforts, such as Secretary for Justice Paul Lam, who received the Gold Bauhinia Star award.
Bronze medals for bravery were also awarded to two residents who saved a number of people during a deadly blaze at New Lucky House in Jordan last April.
The government's 51-strong search and rescue team deployed to earthquake-stricken Myanmar in March and April this year received the chief executive's Commendation for Community Service and Commendation for Government/Public Service.
66 people were also appointed as Justices of the Peace.
Before the security law's enactment, July 1 was also a day of mass protest. However, there have been no large-scale demonstrations since then.
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