Hong Kong Financial Secretary Chen Maobo is defending the proposed 2026 budget amid scrutiny over it’s provisions for the middle class and ongoing economic pressures. The budget, unveiled as Legislative Council debate begins this week, aims to balance fiscal prudence with strategic investment in line with China’s 15th Five-Year Plan. Facing increasing competition from financial hubs like Singapore, Hong Kong is seeking to reaffirm its position as a leading global market and attract both capital and skilled workers.
Hong Kong Finance Chief Defends Budget, Cites Regional Competition
Hong Kong’s financial secretary, Chen Maobo, defended the upcoming 2026 budget, emphasizing the need for fiscal responsibility while acknowledging concerns from the middle class regarding a perceived lack of direct support. The budget comes as Hong Kong navigates a complex economic landscape and seeks to maintain its position as a global financial hub.
Chen Maobo stated that government spending on public welfare will not be reduced, despite broader economic considerations. He also highlighted the importance of Hong Kong capitalizing on opportunities presented by the “15th Five-Year Plan,” a national development strategy that outlines China’s economic and social goals through 2025.
The finance chief noted that Singapore’s success is closely watched by those in Hong Kong’s financial sector, and urged residents not to underestimate the city’s strengths. “Singapore’s development in the financial sector is something everyone in Hong Kong is paying attention to,” Chen Maobo said, according to reports. This statement underscores the competitive pressure Hong Kong faces in attracting investment and talent.
The 2026 budget is also benefiting from an earlier-than-expected recovery in revenue from stamp duty, allowing the government to report a fiscal surplus. This positive financial position provides some flexibility in allocating resources, though officials are maintaining a cautious approach to spending.
Chen Maobo expressed his hope to achieve “quality improvement and increased efficiency” in government spending. He also emphasized the need for Hong Kong to avoid complacency and actively promote its advantages as a financial center. The budget consultation process is currently underway, with officials seeking feedback from various stakeholders.
