Insights from Hong Kong

Posts Tagged ‘Chief Executive’

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From Today’s Cantonese Press

In Hong Kong on 23 January 2013 at 12:28 PM

Yesterday was a day to fall in love with Hong Kong – blue skies, pleasant temperature, low air pollution. Today is a day to take vacation. It’s moist, cold and close. That may get worse with all those cruise ships clogging up the new Kai Tak Cruise Terminal. Why? Read on…

“Non-statutory” council picks five research areas

The Financial Services Development Council advocated by Chief Executive Leung Chun-ying held its first meeting yesterday. The council members agreed on five research areas: financial policy, mainland opportunities, creation of business, market promotion, and human resources. Although the government has been defending the new council for several days, the public is still determined to express criticism. Yesterday, critics seized upon a comment made by the council’s chairwoman, Laura Cha, that the new council was a private organization. Cha later clarified that she meant that the council was a “non-statutory” body.

 

Leung’s popularity plummets following Policy Address

Hong Kong University’s survey center has published the results of a public opinion survey that the center organized following the Policy Address of Chief Executive Leung Chun-ying. According to the center, Leung’s satisfaction rate has taken a hit in the days following the Policy Address, falling by 8.2 points to 48.2 percent. The satisfaction rate of the Policy Address has also fallen, from almost 36 percent to nearly 27 percent. The number of unsatisfied respondents has risen by 15 points to over 39 percent. In response, an academic explained that it was likely that, following the policy address, the public had immediately drawn the conclusion that Leung’s government was determined to solve the housing problem and other social issues. However, the academic noted that reactions to the Policy Address by academics and social groups had likely caused the public to realize just how difficult the housing problem was to resolve. The public might have also noticed how little the Policy Address said on certain other hot-button social issues.

 

Government proposes three measures to reduce cruise ship air pollution

Regarding the effect that the completion of the Kai Tak Cruise Terminal will have on Hong Kong’s air pollution, the government has proposed three measures to mitigate the problem. The measures include research into the feasibility of using a system that would plug ships into the local electricity grid; the passage of legislation that would require ocean-going vessels to use ultra-low-sulfur diesel fuel while in Hong Kong waters; and, in the short-term, encouraging vessel operators to take advantage of a subsidy program that encourages vessels to use ultra-low-sulfur diesel. Some cruise ship companies said that they would respect the decision of the government.

 

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From Today’s Cantonese Press

In Hong Kong on 22 January 2013 at 3:31 PM

 

While youth income hasn’t risen, taxi fares are set to go up. Will a 10% increase lead to a decline in business? Time will tell. Here’s what’s making news in the Cantonese press in Hong Kong today.

Income of the youth has not changed in 10 years

Yesterday, the Census and Statistics Department published its latest report on Hong Kong’s youth. The report says that almost 40 percent of those aged 15 to 24 have an undergraduate university education – twice the percentage of 10 years ago. However, the median monthly salary of the group has not changed. It remains stuck around HK$8,000, failing to rise in line with inflation. According to academics, this situation is the outcome of efforts of former Chief Executive Tung Chee-hwa’s administration to promote secondary school education. They say that doing nothing will be an invitation to social disorder.

 

Rise in taxi fare could lead to a fall in business

The city’s nearly 30 taxi groups yesterday came to a consensus over their request to the Transport Department on a fare rise. They plan to ask for a flag fall rate of HK$22 in place of the current rate of HK$20. They will also ask for a HK$0.10 rise in the unit distance fare from 2.2 to 9 kilometers. The fare rises would go into effect in the second half of 2013. A taxi drivers’ association says that, after the fare rise, business will fall by 20 percent. Additionally, the association says that the financial burdens of drivers will rise due to rising gas prices and increasing taxi rents. The association said that it would monitor the effect of the fare rise before moving to raise taxi rents.

 

Leung supporters express their approval of his policy address housing proposals

According to poll by Chinese University of Hong Kong, only 15 percent of respondents were satisfied by Chief Executive Leung Chun-ying’s Policy Address. Thirty-six percent of respondents were not satisfied. Respondents were the most satisfied with the housing proposals that Leung raised in the Policy Address. However, Leung’s housing proposals were also the topic that respondents were the most dissatisfied with. Yesterday, at the Hong Kong Development Forum, several of Leung’s supporters countered criticisms leveled at the Policy Address by members of society. Choi Ngai-min of the Long Term Housing Strategy Steering Committee was particularly positive, saying that Leung’s proposals on housing were “just what the doctor ordered”.

 

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Hong Kong’s New Chief Executive: Under Fire for Illegal Structures

In Hong Kong, Public Affairs on 26 June 2012 at 10:09 AM

This coming weekend China’s President Hu Jintao will be in Hong Kong. He is here to celebrate the 15th anniversary of this nation’s return to China. Hu will also swear in a new government led by Chief Executive-elect CY Leung. But Hu Jintao will want to get a hotel room. There’s too much noise as demolition work is carried out at CY Leung’s private residence.

You may recall in February this year the surreal storm that surrounded Henry Tang, then a candidate for Chief Executive. He was found to have a 2,500 square foot “underground palace” below his home in Kowloon (see my earlier post). The controversy surrounding this structure – and Tang’s poor public relations management of the issue – contributed to Tang’s drop in the polls and his failure to secure the top spot. The media scrum camped outside his home became the fodder for on-line jokes, such as the image below.

Well the cranes are back. This time they’re at a different house.

CY Leung was found to have a series of illegal additions to his home on The Peak. The six amendments range from a pergola for plants to a covered car park. All were in place when Leung bought the home. The problem is he stated unequivocally that he did not have any illegal structures during the election campaign.

Today media and demolition crews pour over the site. Gone are the various illegal additions. Gone, too, is the trustworthiness of the incoming Chief Executive. CY Leung has apologised three times in the past five days.

Back in action – cranes above CY Leung’s residence

Illegal structures have been a hot political topic, not only during the debate. In the New Territories (where I live), many village houses have roof-top awnings or to-the-floor glass balcony walls. These and many other illegal renovations can be spotted in every village across the Territory.

What makes them illegal? Mainly these structures were added after a building approval was granted. The approved plans are all that can be constructed. Modifications and additions require further approval. Over the years the lack of enforcement means many have slowly, slowly expanded. Some are simple add-ons. Others have built entire floors.

CY Leung said in his campaign that he was going to enforce building codes across Hong Kong. That led to a bitter debate with the regional political authorities in the New Territories. Hang Yee Kuk – usually referred to as ‘the Kuk’ – has been defending the rights of villagers to retain these structures. An immediate abolition would cause chaos as house after house would require dismantling or even total demolition. There isn’t spare housing or access to builders to achieve all these amendments immediately.

So this week CY Leung was found with his hand in the metaphorical cookie jar. He was calling for an end to illegal structures everywhere else but hadn’t checked his own residence. His election campaign probably fueled the fire of Henry Tang’s illegal structure brouhaha. No doubt Tang or the Kuk are playing  a role in Leung’s current difficulties.

Amazingly Leung studied surveying in a diploma course. He’s eagerly trying to explain that his degree in estate surveying is different from building surveying. Few are paying attention to the distinction. Most assume he wasn’t paying attention in school – or to the contract when he bought the house.

The impropriety has led the third candidate for the Chief Executive to call for CY Leung’s removal even before he is installed. Democratic Party Chairman Albert Ho-Chun-yan is seeking redress through the courts. Ho wants Leung’s election negated as he wasn’t truthful in the campaign. (Note to politicians everywhere: Be truthful in campaigns!)

Right now the biggest threat is to CY Leung’s credibility. He is constantly apologising. Newspapers have placed this story on the front page for days now. It made weekend reading and carries on today. Any crisis that continues to generate front page coverage for more than a day is very serious. It’s not been properly managed at the outset.

In all likelihood CY Leung will go on to be appointed as Chief Executive this weekend. The damage to Hong Kong would be too great if he were to be replaced at short notice. Yet Leung enters the role with a backlog of credibility issues. He would be well-served to stop pursuing illegal structures in the New Territories and instead focus on larger issues challenging the Hong Kong people, from income disparity to housing to an overall economic slowdown.

And CY Leung should get his house in order. Finally.

Courtesy of RTHK

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Hong Kong’s Chief Executive: No More Free Gifts & No More Whistling!

In Hong Kong on 15 June 2012 at 2:27 PM

Goodbye – and thanks for all the stuff!

The people of Hong Kong are relieved.

Since he was exposed having accepted gifts from billionaire businessmen, the Chief Executive of this nation hasn’t strayed. He said he learned his lesson. Donald Tsang says he’s stopped accepting favours and gifts.

“Since my previous trip to Macau, I have not visited Macau again with so-called tycoons,” said Donald Tsang in legislature yesterday. “I have also avoided riding on private yachts or flying in the jets of others.”

Can you hear the collective sigh of relief? Imagine. The nation’s top public official won’t take rides in private yachts, or accept free tickets on private jets. How does he get around?

Back in March this year Chief Executive Donald Tsang was exposed for accepting gifts from well-known business people in Hong Kong. (See my earlier post.) He’d been on private yachts, staid free in luxury hotels, flown on private planes and planned to retire in a luxury apartment rented at a fraction of the fair market value.

Could these gifts have influenced his legislation? Not at all said Donald.

Then in June a government audit found Tsang was staying in presidential suites when traveling on business – and charging the Hong Kong taxpayers. (Again an earlier post on the subject.) His overall travel budget was astronomical.

(Please note, that even the French President had “jet envy” and ordered a US$230 million jet to compete with Air Force One in the USA. It wasn’t that Sarkozy was short.  He just envied Obama’s big fuselage.)

Yesterday Donald Tsang gave his final address before LegCo (Legislative Council). In this he said he’d learned from his mistakes. He hadn’t taken more gifts. He would serve out his remaining 15 days in power traveling on public transportation (or just staying home until he was free to fly first class again).

He even addressed an age-old suspicion that he was…a whistler.

Seems before he stepped into the role, Mr Tsang paid the former Chief Executive a visit. He whistled on his walk there. Days later Tung Chee-hwa stepped down and Donald “The Whistler” Tsang assumed the role. Maybe he should have hummed “Ode to Joy” instead?

“I have never whistled again since then,” said Tsang yesterday. “So I think we learn from what has happened.”

Many have called for Tsang to step down. Instead he plans to serve out the remainder of this month working on the issues that matter to the people of Hong Kong. When pressed as to what those might be, he said income disparity and housing concerns.

My advice? Let Chief Executive Tsang continue for 15 days if he plans to tackle those two issues. If he has time he might also reduce air pollution and improve public transport. Hell – if he does any of those things he’s outlined for the next 15 days I’d even encourage him to whistle again.

Perhaps he can practice whistling as he walks to address the Independent Commission Against Corruption (ICAC). They are investigating his acceptance of gifts from “so-called tycoons,” as Tsang calls them.

Donald can join Goofy and “Whistle While You Work”! 

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Hong Kong’s Chief Executive: Lifestyles of the Rich and Elected

In Hong Kong, Public Affairs on 1 June 2012 at 4:02 PM

The public eye suddenly regained focus on Chief Executive Donald Tsang yesterday after two government reports were released – one on his extravagant overseas visits and one on his acceptance of undue favors from tycoons.

An Audit Commission report found that over the past five years, the Chief Executive’s Office spent a total of HK$12 million on 55 official visits overseas.  There were 49 nights when Tsang’s accommodations were covered by the Hong Kong government and all them exceeded the maximum budget for civil servants.  On two separate trips to London and Australia last year, Tsang’s accommodation expenses exceeded the budget by 22 times and 5 times respectively.

The most interesting piece of the Audit Commission report was on Tsang’s recent trip to Brazil which caused a public outcry and thus the commission stepping in.  In response to a TVB news report that Tsang stayed at a presidential suite that cost HK$50,000 per night, the CE Office explained back then that the room was chosen for its suitability to hold meetings.  But the commission found that only one meeting of 25 minutes was held in that suite of 4,000 square feet!  In all, the commission found the spending of public money on Tsang’s luxurious accommodation unjustified and unreasonable.

Separately, after a series of media investigative reports earlier this year that revealed Tsang’s traveling on his tycoon friends’ private jets and yachts, a special committee was set up to review the existing mechanism on conflicts of interests concerning top officials.  The committee, chaired by former chief justice of the court of final appeal Andrew Li, found the present system to be completely inappropriate and had a fundamental defect in exempting the chief executive from the anti-bribery regime that applied to politically appointed officials and civil servants.  The committee proposed 36 measures including the set up of an independent committee to approve the chief executive’s acceptance of benefits and making his acceptance of unapproved favor a criminal act.

Observers said the reports might be the central government’s deliberate effort to fix CY Leung’s slumping popularity (because everything is relative…)  In fact, Leung has already shown much political wisdom when he chose to travel on economy class to Beijing for his official appointment.  He also blogged about having curry fish balls and Chinese puddings for dinner during the campaign period.  But there is a price that Leung has to pay – Andrew Li’s recommendations are only meant to be forward-looking.  That means Tsang will be the last chief executive who gets to stay at rooms like the presidential suite in Mandarin Oriental Washington DC.

When Leung takes office on July 1st, the YMCA may be more his class.

Guest Author

Today I am fortunate to have a guest author for “Facing China.”

Vivian Au is a Director at Kreab Gavin Anderson Hong Kong.  Her specialty is in regulation management and public policy issues.

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Messy, Sloppy, Uneven Democracy – CY Leung, New Hong Kong Chief Executive

In China, Hong Kong, Public Affairs on 26 March 2012 at 11:59 AM

On Sunday the Election Committee nominated CY Leung as the next Chief Executive of Hong Kong. And while having 1,200 selected members choose a nation’s leader doesn’t necessarily sound like democracy, in a weird Hong Kong way it was. Sort of.

At the start of the process it was made clear that, of the three candidates, there really was one chosen one – Henry Tang. He was widely seen as the favourite choice for businessmen, civil servants, and the government in Beijing. This was Henry’s election to lose - and lose it he did!

In a string of widely publicised scandals Henry Tang went from front-runner to flat-footed. First came revelations he had a string of affairs while married. Then he was found to have a 2,500 square foot luxury basement built without planning approval. Tang blamed his wife. (More on that later. Tang could face jail for the illegal dwelling.) Next came the purported baby from those out-of-wedlock trysts.

The third candidate, Albert Ho, was never expected to gain much support. He is the chairman of the break-away Democratic party. To call them a thorn in the side of China would be an understatement. We have more chance of the Dalai Lama being received in the Great Hall of the People than seeing a Democrat in charge of Hong Kong.

Then there was CY. He started with the popular support of the people in Hong Kong – if only as a replacement for what was seen as a shoe-in for Tang. Yet he too suffered his scandals, especially when it was found that members of his election committee met with a renowned Triad member at a restaurant in the New Territories.

So there we were. Three candidates. Each touched with a fair degree of soil. Yet on Sunday in the Hong Kong Exhibition Center the 1,200 members of the Election Committee convened and voted. CY Leung received 689 votes in the first round – well over the 50% required to avoid a second round vote.

And there they were. The unsuccessful candidates congratulated Leung, who promised to unite our fair city:

“From now on, there won’t be any Tang camp, Ho camp nor Leung camp. There is only one camp – the Hong Kong camp.” CY Leung in his acceptance remarks.

And there THEY were – the protesters Beijing hates to see. Thousands gathered. Several attempted to break-in. Police used pepper spray to disperse the heartiest protesters.

A choice of candidates. A demonstration against the winner – and a larger one planned for this coming Sunday.  A series of opinion polls. Many, many scandals. Accusations and counter-accusations. In a messy, sloppy, uneven way this is how democracy works. Most important this “trial” was meant to prepare the people of Hong Kong for the next stage – the direct election of a Chief Executive by the people in 2017.

This messy election was the starter – we get a real taste of democracy in five years time.

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Five things businesses can learn from the Hong Kong chief executive election

In Hong Kong on 20 March 2012 at 3:54 PM

By Robyn Joseph

From Campaign Asia

Robyn Joseph, Partner, Kreab Gavin Anderson

Six days before the Hong Kong chief executive election, with the relationship between politicians, bureaucrats, the media and the public shifting, Robyn Joseph, partner of Kreab & Gavin Anderson, shares the implications for communication to mass audiences in the future.

1. The weight of public opinion

Hong Kong has spoken. Ethics, honesty and transparency are qualities that it values in its leaders, both government and business. Possessing power and wealth no longer exclude leaders from these standards. Therefore, businesses in Hong Kong would be well advised to review and prepare risk-mitigation and change-management strategies if necessary, because if they are found lacking they will be held accountable.

2. Social change and business decision-making

There are three candidates in the chief executive race, one from the pan-democratic camp and two from the pro-establishment camp. Interestingly, the real competition is between the two pro- establishment representatives. This tells us that even within the pro-establishment camp, there are individuals who are not satisfied with the status quo.

Most significantly, public opinion polls demonstrate that the Hong Kong people are not satisfied with the status quo. Therefore social change is afoot.

While it is still early days, the lesson for business is that it should not be making decisions based on the ‘old standards’. Business should be listening very carefully to the community to understand what it is that Hong Kong aspires to. Business’ future success will to some extent be based on its ability to deliver the changes that Hong Kong wants.

3. Social media: is anyone listening?

The traditional media has delivered a beating to each of the two pro-establishment candidates throughout the campaign. But neither has any excuses for not having been warned.

The social media was buzzing with the next juicy story before it was released by the traditional media online. And following each shocking revelation, the social media buzzed with opinion as to how the candidates should handle themselves.

While the reticence to engage with the social media is understandable, business and government should, at the very least, be using it to listen. Never before have they had such an efficient, real-time method to gather opinion.

4. Social versus traditional media

Everyone has got an opinion, but not every opinion is well considered. Business could never hope to reach everyone with an opinion, but it should spend some time identifying the most influential bloggers and tweeters, just as it does for the traditional media. It’s not hard to do. The tools are available.

5. Level Hong Kong’s playing field

One of the biggest observations during the election campaign is Hong Kong’s outrage at the extravagance of its leaders. As Hong Kong’s middle class begins to struggle to manage basics like  housing, education and health, the community expects its civil servants to act. This is likely to lead to more regulation. So business would be well advised to keep an eye on the agenda in LegCo.

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Las Vegas & HKG ExCo – What Happens Here Stays Here?

In China, Hong Kong, Public Affairs on 19 March 2012 at 11:20 AM

Las Vegas embraced its ‘Bad Boy’ reputation with a series of commercials under the theme – what happens here stays here. One shows an ecstatic girl kissing her new husband and saying she must get back to the convention. He doesn’t speak a word of English. My favourite is understated – it shows a mature Asian woman writing a postcard, then reading it before mailing. The smile disappears as she realises she’s shared some secrets. Watch it.

What’s good for Las Vegas is also good for ExCo – shorthand for the Executive Council of Hong Kong Government. This government body comprises 13 non-official members and 15 official members. They work as advisors to the Chief Executive. In the US this would be the President’s Cabinet.

On Friday during a debate candidate Henry Tang “dropped a bomb” by saying that rival CY Leung supported the use of tear gas in crowd control in Hong Kong back in 2003. Tang also said Leung wanted shorter broadcast licenses for commercial radio stations as a way of controlling press freedom.

The news is alarming on two levels.

First are the accusations. Hong Kong citizens take to the streets to demonstrate regularly. The anniversary of Tiananmen Square is observed with a march bringing together thousands of citizens. The recent slight by Dolce & Gabbana meant Canton Street became impassable on a Sunday as people thronged to protest in front of the store. So seeking a government ordinance that would permit the use of tear gas on its own citizens is alarming.

Second is the breach of confidence. ExCo meetings are confidential and there is no precedence for sharing internal discussions. As Henry Tang violated that protocol people question his leadership. There is also a call now that minutes of that meeting be made public. Should that happen then precedent could mean future ExCo meetings would be made public as well.

Tonight is the last debate before Sunday’s selection by the Hong Kong Election Committee. Tang is rumoured to be ready to drop another “bomb”. Everyone is keen to see if it’s another confidential missive.

For Henry Tang the strategy is working. Weekend polling show his appallingly low popularity ratings have climbed, while Teflon CY Leung slipped a few points. If Henry Tang goes the Julian Assange route and uses confidential government information to promote his own cause, we’ll all wait with interest to see what others can be share on Mr Tang himself.

Maybe he’ll wind up wishing it was all left in Vegas.

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“Was That A Nod, Premier Wen?” Hong Kong Asks

In China, Hong Kong on 15 March 2012 at 5:37 PM

What is Premier Wen pointing to? Is that CY Leung's name pinned to the ceiling?

The National People’s Conference concluded yesterday in Beijing. And to wrap up proceedings Premier Wen Jiabao held a press conference over three hours. There were far-ranging topics discussed, from economic policy to the actions of Chongqing’s Deputy Mayor.

In-between there was talk of Hong Kong. And while no definitive direction was offered, there’s a scramble to decipher each word.

“I believe that, as long as the principles of openness, justice and fairness are observed and relevant procedures are complied with, the chief executive election will result in a leader who has the support of the vast majority of the people in Hong Kong,” said Premier Wen (Source: The Standard).

As a simple American-Australian, I read this to say that citizens in Hong Kong will be happy with whoever is chosen so long as it is done in a transparent and just fashion.

But in Hong Kong the interpretations are flying. Everyone is keen to know which candidate for Chief Executive Beijing will support come the 25 March election.

Some say this is a clear nod to candidate CY Leung – as he is the candidate preferred today in opinion polls (“leader who has the support of the vast majority”).

Henry Tang chose to emphasise another portion in his web post yesterday (“principles of openness, justice and fairness”). He infers it made him the clear choice.

Sadly no one believes the third candidate – Albert Ho – was even referenced. As he is Chairman of the Democratic party he is unlikely to ever get mentioned politely among political circles in Beijing.

Thankfully my interpretation wasn’t far off base:

Democratic Alliance for the Betterment and Progress of Hong Kong chairman Tam Yiu-chung said Wen did not indicate which candidate Beijing favors. (Source: The Standard)

With a track record like that, maybe I have a future reading tea leaves.

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In Hong Kong, Votes Don’t Count – But Polls Do

In Hong Kong, Public Affairs on 14 March 2012 at 10:30 AM

With less than two weeks to go before the polling for a new Chief Executive (CE) for Hong Kong, the papers are rife with stories about candidates and the sitting CE. Yet in a country without universal suffrage, the closest citizens can get to the election process is through newspaper coverage and opinion polls.

This is the first election under new rules.  As a result of a constitutional reform in 2010, the Election Committee that is responsible for choosing our next leader has been expanded from 800 to 1,200 members.  The reform represents an incremental step towards a CE election by universal suffrage in 2017 according to  a decision by the Standing Committee of the National People’s Congress in 2007.  This year’s election is also significant in a sense that the CE elected on 25 March will be tasked with development of transition plans, or the so-called “road map”, to fully democratize the election processes in Hong Kong.

It is widely acknowledged that, as part of the “road map”, Beijing allowed three high-profile candidates to enter the race with an understanding that one would easily triumph. It’s purported the “one” was Henry Tang.

For over a month now Tang has been the subject of intense scrutiny. His extra-marital affair, his unauthorised dwelling modifications and even an illegitimate child have all been splayed across the newspapers. It’s apparently been a shock to Beijing as no one anticipated the widespread “American style” politicking. (Note to Anthony Wiener – your text messages are so last year.)

Just as Tang suffered early media investigation, this week the attention has turned to CY Leung. Today’s South China Morning Post features a rural leader had set up a crucial dinner between Leung’s election office staff and “controversial business man” Kwok Wing-hung – aka “Shanghai Boy” – who is reported to be a triad leader.

So far we have investigative journalism. We have candidates embroiled in scandal. We have no clear victor. And we haven’t gotten to a vote yet. Sounding like the USA Republican Primaries?

What is most worrying is that the candidates may make themselves unelectable. Yet the Election Committee will gather to select one on 25 March. And if Hong Kong doesn’t care for the selected CE there is no doubt mass protests will ensue. It’s the best way Hong Kongers have of expressing political discontent. Of course that will go down a bomb in Beijing!

By 2017 Hong Kong will be ready to elect their next leader. Until then they are experiencing many of the facets of modern politics. Even messy democracy is still democracy.

Seeking new resident - must be able to implement universal suffrage by 2017.

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