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Key statistics on business performance and operating characteristics of building, construction and real estate sectors in 2017

     According to the results of the 2017 Annual Survey of Economic Activities – Building, Construction and Real Estate Sectors released today (November 30) by the Census and Statistics Department (C&SD), the construction sector’s total receipts (comprising gross value of construction works performed and other business receipts) amounted to $418.5 billion in 2017, representing an increase of 3.1% over 2016; on a per establishment basis, total receipts was $16.8 million in 2017, increased slightly by 0.4% compared with 2016.

     Operating expenses and compensation of employees of the construction sector altogether amounted to $377.6 billion in 2017, representing an increase of 2.8% over 2016; on a per establishment basis, they were $15.2 million in 2017, edged up by 0.1% compared with 2016.

     Gross surplus of the construction sector, which is equal to total receipts less operating expenses and compensation of employees, increased by 6.1% over 2016 to $40.9 billion in 2017; on a per establishment basis, gross surplus increased by 3.3% compared with 2016 to $1.6 million in 2017. Gross surplus accounted for 9.8% of total receipts in 2017, up by 0.3 of a percentage point over 2016.

     Value added of the construction sector, which is a measure of its contribution to Hong Kong’s Gross Domestic Product, increased by 5.2% over 2016 to $132.8 billion in 2017; on a per establishment basis, the value added was $5.3 million in 2017, representing an increase of 2.4% over 2016.

     In 2017, there were some 24 800 establishments in the construction sector, which directly engaged about 185 100 persons, or an average of 7.5 persons per establishment.

     The survey did not cover labour-only sub-contractors that mainly supplied labour to work on a job-to-job basis, owing to practical consideration in data collection. The employment figures above mainly covered direct employees of the construction establishments and did not reflect the labour input through the sub-contracting activities of labour-only sub-contractors.

     Apart from the construction sector, the survey also enumerated establishments engaged in real estate activities; and architectural, surveying and engineering services.

     Total receipts (comprising gross margin of real estate development projects, service and rental income and other business receipts) of establishments engaged in the real estate activities (including real estate development, real estate leasing, real estate brokerage and agency and real estate maintenance management) amounted to $202.0 billion in 2017, representing an increase of 4.0% over 2016. Operating expenses and compensation of employees altogether amounted to $82.0 billion in 2017, representing an increase of 8.1% over 2016. Gross surplus increased by 0.8% compared with 2016 to $111.6 billion in 2017. Gross surplus accounted for 55.3% of total receipts in 2017, down by 1.8 percentage points compared with 2016. Value added increased by 3.6% compared with 2016 to $145.3 billion in 2017.

     In 2017, the real estate activities comprised 9 100 establishments and engaged about 112 300 persons, or an average of 12.4 persons per establishment.

     The total number of private real estate projects ever operated in 2017 was 299. As at end-2017, 236 projects, which were expected to provide a total 7.4 million square metres of gross floor area of buildings when completed, were still under construction. Among them, 19% were on Hong Kong Island, 30% in Kowloon and 51% in the New Territories and outlying islands.

     The survey excluded establishments which developed real estate projects for their own use as well as those which owned land but had not developed it during the reference year. Real estate leasing and other related activities undertaken by individuals or firms which engaged less than two persons (except for subsidiaries of real estate enterprises) were also not covered in the survey.

     Total receipts (comprising service income and other business receipts) of establishments engaged in the architectural, surveying and engineering services amounted to $22.0 billion in 2017, representing an increase of 1.4% over 2016. Operating expenses and compensation of employees altogether amounted to $19.9 billion in 2017, representing an increase of 0.5% over 2016. Gross surplus increased by 10.6% compared with 2016 to $2.1 billion in 2017. Gross surplus accounted for 9.4% of total receipts in 2017, up by 0.8 of a percentage point compared with 2016. Value added increased by 3.7% compared with 2016 to $15.7 billion in 2017.

     In 2017, the architectural, surveying and engineering services comprised some 2 000 establishments and engaged about 25 700 persons, or an average of 12.8 persons per establishment.

     Selected statistics for the building, construction and real estate sectors, with breakdowns by industry grouping, are shown in the attached table.

     More detailed survey results on the building, construction and real estate sectors will be given in the report “Key Statistics on Business Performance and Operating Characteristics of the Building, Construction and Real Estate Sectors in 2017”. Users can download this report free of charge at the website of C&SD (www.censtatd.gov.hk/hkstat/sub/sp330.jsp?productCode=B1080011) as from end-December 2018.

     For enquiries about the key statistics on business performance and operating characteristics of the building, construction and real estate sectors, please contact the Construction and Miscellaneous Services Statistics Section of the C&SD at telephone: 3903 6964 or email: building@censtatd.gov.hk. read more

Hong Kong Customs combats restaurants supplying short-weight seafood (with photo)

     Hong Kong Customs conducted an operation to combat restaurants supplying short-weight seafood from November 19 to today (November 30). During the operation, three restaurants were found to be suspected of supplying short-weight Alaskan crabs.

     Customs officers conducted test-buy operations at restaurants in different districts and ordered Alaskan crab. The crabs supplied by three restaurants located in North Point, Kwai Chung and Tseung Kwan O were found short of weight by 8 taels to 12.9 taels. The spring scale of the restaurant in Tseung Kwan O was also found to be inaccurate.

     Investigations are ongoing.

     Under the Weights and Measures Ordinance (WMO), any person who in the course of trade supplies goods to another person by weight or measure should supply the goods in net weight or net measure. Any shortage of the quantity purported to be supplied is an offence. The maximum penalty upon conviction is a fine of $10,000. In addition, any person who uses for trade, or has in his possession for use for trade, any weighing or measuring equipment which is false or defective commits an offence. The maximum penalty upon conviction is a fine of $20,000.

     Customs appeals to traders to comply with the requirements of the WMO. Customs also reminds consumers to purchase products from reputable shops and pay attention to the process of weighing by restaurants when ordering food supplied by weight.

     Customs will continue to take stringent enforcement action against short-weight activities at restaurants to protect consumers’ interests and uphold a fair trading environment.

     Members of the public may report any suspected violations of the WMO to Customs’ 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk).

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Seventeen immigration offenders arrested

     The Immigration Department (ImmD) mounted a series of territory-wide anti-illegal worker operations, including an operation codenamed “Twilight”, and joint operations with the Hong Kong Police Force and the Labour Department codenamed “Champion” from November 26 to 29. A total of 10 illegal workers, six suspected employers and one overstayer were arrested.
      
     During operation “Twilight”, ImmD Task Force officers raided 80 target locations including commercial buildings, a factory, a garage, industrial buildings, residential buildings, restaurants, shops and a farm. Seven illegal workers and three employers were arrested. The illegal workers comprised three men and four women, aged 23 to 51. Among them, one man and three women were holders of recognisance forms, which prohibit them from taking any employment. In addition, one man was suspected of using and being in possession of a forged Hong Kong identity card. Meanwhile, one man and two women, aged 31 to 52, were suspected of employing the illegal workers. Furthermore, one female overstayer, aged 49, was arrested.
      
     In addition, during operation “Champion”, enforcement officers raided 20 target locations in Tsing Yi, Kwai Chung, Chai Wan and North Point including car parks, a factory, restaurants and massage parlours. Three male illegal workers, aged 32 to 49, were arrested. Among them, two men were holders of recognisance forms, which prohibit them from taking any employment. Meanwhile, two men and one woman, aged 38 to 53, suspected of employing the illegal workers were also arrested.
      
     “Any person who contravenes a condition of stay in force in respect of him shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years’ imprisonment. Aiders and abettors are also liable to prosecution and penalties,” an ImmD spokesman said.
 
     The spokesman warned that it is an offence to use or possess a forged Hong Kong identity card or a Hong Kong identity card related to another person. Offenders are liable to prosecution and a maximum penalty of a $100,000 fine and up to 10 years’ imprisonment.
      
     The spokesman warned that, as stipulated in section 38AA of the Immigration Ordinance, illegal immigrants or people who are the subject of a removal order or a deportation order are prohibited from taking any employment, whether paid or unpaid, or establishing or joining in any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years’ imprisonment. The Court of Appeal has issued a guideline ruling that a sentence of 15 months’ imprisonment should be applied in such cases. 
      
     The spokesman reiterated that it is a serious offence to employ people who are not lawfully employable. The maximum penalty is imprisonment for three years and a fine of $350,000. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence. According to court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee’s identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker’s valid travel document if the job seeker does not have a Hong Kong permanent identity card. The maximum penalty for failing to inspect such a document is imprisonment for one year and a fine of $150,000.
      
     Under the existing mechanism, the ImmD will, as a standard procedure, conduct initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, the officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threat and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent interference, medical services, counselling, shelter, temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments. read more

Speech by CE at University of Chicago Francis and Rose Yuen Campus in Hong Kong opening ceremony (English only) (with photos)

     Following is the speech by the Chief Executive, Mrs Carrie Lam, at the opening ceremony of the Hong Kong Jockey Club University of Chicago Academic Complex | The University of Chicago Francis and Rose Yuen Campus in Hong Kong today (November 30):

Professor Zimmer (President of the University of Chicago, Professor Robert Zimmer), Anthony (Chairman of the Hong Kong Jockey Club, Mr Anthony Chow), Francis, Rose (University Trustee of the University of Chicago and donor, Mr Francis Yuen, and his wife, Mrs Rose Yuen), distinguished guests, ladies and gentlemen,

     Good afternoon. It’s a great pleasure to join you today for the grand opening ceremony of the University of Chicago Francis and Rose Yuen Campus. I have been looking forward to this day since I officiated with Professor Zimmer at the naming ceremony of this centre in 2016 as the Chief Secretary for Administration. I am glad that, after two years, this magnificent new university centre, a US$75 million restoration and construction development, is now officially open.

     Higher education institutions are essential to creating the talent we need to succeed in the global economy. They are also essential in connecting people, institutions, business and governments. That is indeed the case today, as we formally welcome one of the world’s most prestigious universities, the University of Chicago, and the second-oldest business school in the United States, the University of Chicago Booth School of Business, to Hong Kong. The University of Chicago Francis and Rose Yuen Campus will serve as the Asian base for Chicago Booth’s flagship Executive Master of Business Administration (EMBA) Programme. It will, as well, be home to the University’s student abroad programme.

     I am pleased to note that the complex also features the Hong Kong Jockey Club Programme on Social Innovation. A partnership between the Hong Kong Jockey Club Charities Trust and the University of Chicago, this Programme offers a range of opportunities, including scholarships, social entrepreneurship workshops, and training for NGO professionals. Next week, I understand it will host the Global Launchpad, a four-month training programme designed to provide social entrepreneurs with the tools, coaching, and hands-on learning needed to effectively grow their early-stage ventures.

     Today’s opening underlines my Government’s commitment to strengthening Hong Kong’s status as a regional education hub, and to the internationalisation and diversification of our higher education sector. Our internationalisation measures include expanding quotas for non-local student admission, setting up a Government Scholarship Fund for outstanding local and international students, and allowing students from outside Hong Kong to stay here without limitation for up to 12 months after graduation. As for diversification, we encourage international institutions to set up in Hong Kong through such measures as our Land Grant Scheme, the Quality Enhancement Support Scheme and the Research Endowment Fund.

     We are glad to see that our efforts have started to bear fruit. This stunning new campus was made possible through our Land Grant Scheme, and will surely be a win-win for both Chicago Booth and for Hong Kong. For Chicago Booth, Hong Kong is an ideal choice for recruitment of quality students in the region given its excellent connectivity, diversity and vibrancy in the city. For Hong Kong, we are pleased to have another world-renowned EMBA programme provider in our city which would help establish Hong Kong as a quality education platform for both local and non-local students.

     Indeed, 130 EMBA students have enrolled in the two-year programme. They come largely from Hong Kong, but also from all over Asia as well, including India, Indonesia, Japan, Malaysia, Singapore and the Mainland. Mainland students are taking part, I should add, through a pilot scheme introduced with the support of the Ministry of Education of the Central People’s Government. In place since the 2017/18 academic year, it offers Mainland students placement in full-time locally accredited, non-local programmes here.

     The opening of this new campus also marks the successful completion of a heritage conservation and revitalisation project. The campus, which rises from two heritage buildings, is situated on a historically important site. From the late 1930s, it was part of the British Army’s Jubilee Battery, used in the defence of Hong Kong during the Second World War. Later, it became home to the Victoria Road Detention Centre, known as the “White House”. In 2010, during my term as Hong Kong’s Antiquities Authority in my then official capacity as the Secretary for Development, the compound was accorded Grade 3 historic building status by the Antiquities Advisory Board. And now, we have here a unique landmark reflecting Hong Kong’s architectural traditions and heritage.

     I understand the public is welcome to enjoy its beauty, and the history that surrounds it, through the Hong Kong Jockey Club University of Chicago Heritage Courtyard and Interpretation Centre. I learnt that guided tours and exhibitions will begin next week. The scenic trail running through and around the site, with its spectacular sea views, will also be open to the public.

     I would like to take this opportunity to join Professor Zimmer in paying tribute to the late Bing Thom, the lead architect of this project. Bing was also the designer of the Xiqu Centre in the West Kowloon Cultural District, which will be formally opened early next year. We are indebted to him for his work which has greatly enriched Hong Kong’s architectural scene.

     Finally, my thanks to the University of Chicago and Chicago Booth, to the Hong Kong Jockey Club, to Francis and Rose Yuen, and to many others who are involved in this wonderful project. Thank you for making this historic site come to a brilliant life. I wish the Centre all the best in its many endeavours.

     Thank you very much.

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