Author Archives: hksar gov

     Following is a question by the Hon Lam So-wai and a written reply by the Acting Secretary for Commerce and Economic Development, Dr Bernard Chan, in the Legislative Council today (November 6):
 
Question:
 
     In the 2024 Policy Address, it is proposed that in order to develop Hong Kong into a cross-boundary e-commerce logistics and distribution centre, the Government will review existing procedures to enhance the efficiency of cross-boundary goods’ distribution, strengthening the competitiveness of Hong Kong. There are views that as a “super connector”, Hong Kong possesses advanced cross-boundary e-commerce infrastructure and development potential, and promoting the development of the cross-‍boundary e-commerce industry is also conducive to consolidating Hong Kong’s position as an international trade and maritime centre. The Government needs to sustain long-term strategic policies to better utilise public resources and the potential of the industry to boost the growth of the cross-boundary e-commerce industry. In this connection, will the Government inform this Council:
 
(1) whether it will establish a data sharing platform for the cross-‍boundary e-commerce industry in Hong Kong, so that various parties such as airline companies, freight forwarding and logistics companies and trucking suppliers may complete the process of data exchange more securely and expeditiously through the platform along with the use of blockchain technology, thereby catering to the needs of cross-boundary e-commerce development; if so, of the details; if not, the reasons for that;
 
(2) whether it has conducted systematic surveys and studies on the development of Hong Kong’s cross-boundary e-commerce industry, including compiling statistics and studying the annual import and export volume of cross-boundary e-commerce, the operation of logistics companies and the degree of intelligence of the supply chain, as well as evaluating the effectiveness of the “Hong Kong Shopping Festivals” organised on Mainland e-commerce platforms in August this year, so as to formulate a more focused policy for the cross-boundary e-commerce industry; if so, of the details; if not, the reasons for that; and
 
(3) whether it has plans and specific measures to foster the efficient interface of the flows of goods, information and capital of the cross-boundary e-commerce industry, thereby developing Hong Kong into a cross-boundary e-commerce supply chain hub in the Asia-Pacific region; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,

     The Chief Executive announced in the 2024 Policy Address that the Government will review existing procedures to enhance the efficiency of cross-border goods’ distribution within 2025 with a view to developing Hong Kong into a cross-border electronic commerce (e-commerce) logistics and distribution centre. This initiative will tie in with various support measures of the Government for assisting small and medium enterprises (SMEs) in developing the Mainland and the Association of Southeast Asian Nations (ASEAN) e-commerce markets and promoting Hong Kong brands, thereby encouraging more enterprises to actively grasp the opportunities of e-commerce.
 
     Having consulted the Transport and Logistics Bureau, the reply to the three parts of the question is as follows:
 
(1) Currently, there are different logistics data platforms set up in the local logistics industry. On the air cargo front, to push forward the digitalisation of air cargo transport and enhance operational efficiency and cargo supply chain transparency, the Airport Authority Hong Kong has developed the HKIA Cargo Data Platform to facilitate the exchange of logistics data from and by various stakeholders in the air cargo sector (such as freight forwarders, warehouse operators, truckers, terminal operators). On the maritime front, the Government is also developing a port community system equipped with functions such as shipment tracking, real-time transport information, electronic information and document retrieval, and port data analysis, with a view to enabling the flow and sharing of data among stakeholders in the maritime, port and logistics industries.
 
(2) Government bureaux and departments maintain liaison with various industrial and trade organisations to understand the situations and development needs of the relevant sectors, with a view to formulating appropriate policies and support measures. Apart from exchanging views with major chambers of commerce in Hong Kong from time to time, the Commerce and Economic Development Bureau (CEDB) also taps the trades’ views through the Trade and Industry Advisory Board and the Small and Medium Enterprises Committee set up under the CEDB. In January 2024, the CEDB established the inter-departmental E-commerce Development Task Force (Task Force) to co-ordinate and formulate policies on promoting enterprises to grasp the opportunities brought about by e-commerce. An expert group, which comprises Legislative Council Members from different sectors and representatives in the industry, has also been established under the Task Force to help keep the Government abreast of the market situation of e-commerce development and feedback from the trade more comprehensively.
 
     In addition, the Hong Kong Trade Development Council (HKTDC) has been publishing research reports on and analyses of e-commerce ecosystems in different markets, including market prospects, consumption habits, development trends, business strategy of various platforms and the latest policy developments, to provide information for enterprises to develop e-commerce business. The Government has not separately compiled any statistics or studied the operations of the logistics companies and distribution of goods from the perspective of cross-border e-commerce. We will review in due course if there is a need to conduct more research and analysis on cross-border e-commerce development.
 
     The inaugural Hong Kong Shopping Festival (HKSF) featured more than 230 brands and showcased over 500 types of great value products in six major categories, namely apparel and accessories, personal care and cosmetics, home and living, food and beverage, smart gadgets and health supplements, covering consumers’ various needs. The event concluded successfully in August 2024 and was well-received, with total impressions exceeding 90 million on e-commerce discussion forums and the HKSF’s website. The HKTDC has conducted a survey to collect feedback from participating enterprises and is analysing the findings. The HKTDC will build on this year’s experience, optimise event arrangements and continue to organise the HKSF in the next two years, thereby continuing to help Hong Kong enterprises gain practical experience and explore business opportunities through e-commerce and social e-commerce platforms.
 
(3) Under “one country, two systems”, Hong Kong leverages the advantages of the free market and provides enterprises with a free and open business environment, with free flow of capital and information. According to the Economic Freedom of the World 2024 Annual Report published by the Fraser Institute in October this year, Hong Kong ranks as the world’s freest economy among 165 economies.
 
     Regarding information flow, as at July this year, household broadband penetration rate has reached nearly 97 per cent, with the number of registered subscriptions with broadband access estimated to be about three million. In view of the increasing demand for cross-boundary services and data flow between Hong Kong and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), the Government has signed the Memorandum of Understanding on Facilitating Cross-boundary Data Flow within the Guangdong-Hong Kong-Macao Greater Bay Area with the Mainland, with a view to promoting more cross-boundary services to benefit the public and businesses while facilitating data flow throughout the GBA.
 
     Regarding capital flow, Hong Kong is one of the top three international financial centres. The Government will continue to enhance the mutual market access regime and reinforce Hong Kong’s status as the world’s largest offshore Renminbi business hub. We are also pushing forward the linkage of fast payment systems in Hong Kong and the Mainland, thereby facilitating real-time, cross-boundary small-value payments by residents on both sides.
 
     Having regard to the rapid growth of global e-commerce business, the Government will continue to implement different measures, with a view to fostering the development of cross-border e-commerce in Hong Kong, including:
 
(i) Hongkong Post (HKP) is now redeveloping its Air Mail Centre (AMC) located at the Hong Kong International Airport. The redeveloped AMC, planned for commissioning by the end of 2027, will strengthen the HKP’s capability to handle cross-border e-commerce goods;
 
(ii) The Customs and Excise Department will continue to implement various cargo trade facilitation initiatives (including the Hong Kong Authorized Economic Operator Programme, Single E-lock Scheme, Free Trade Agreement Transhipment Facilitation Scheme and Cross-boundary Express Cargo Clearance Facilitation Arrangement), streamline customs clearance process and expedite cargo flow;
 
(iii) The Government launched “E-commerce Easy” under the Dedicated Fund on Branding, Upgrading and Domestic Sales in July 2024 to encourage enterprises to implement e-commerce projects on the Mainland. The expansion of the geographical coverage of “E-commerce Easy” to the 10 countries of ASEAN as announced in the 2024 Policy Address will help SMEs grasp the enormous business opportunities brought about by the rapid development of the ASEAN market; and
 
(iv) The Support and Consultation Centre for SMEs under the Trade and Industry Department will continue to take lead and co-operate with the other three SME centres (i.e. the “SME Centre” under the HKTDC, the “SME One” under the Hong Kong Productivity Council (HKPC), and the “TecONE” under the Hong Kong Science and Technology Parks Corporation) to strengthen the provision of information to SMEs on conducting e-commerce. “SME ReachOut”, set up under HKPC, will provide information related to e-commerce to SMEs through exchanges with SMEs and seminars.
 
     Government bureaux and departments will continue to assist Hong Kong enterprises in developing cross-border e-commerce business through different channels. read more

     â€‹Following is a question by the Hon Lam San-keung and a reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (November 6):   Question:        At present, th… read more

The following is issued on behalf of the Transport Advisory Committee:

     The Working Group for Enhancing Personalised Point-to-Point Transport Services under the Transport Advisory Committee (TAC) convened its first meeting today (November 6).

     At the meeting, members were briefed on the Government’s work progress on the study to enhance personalised point-to-point transport services, and discussed the role and positioning of personalised point-to-point transport services in the public transport system, including the need to take into account the principle of ensuring the efficient, reliable and long-term healthy development of the public transport system. Members were also briefed on the experiences and policy considerations in regulating online hailed car platforms in other places as a reference, including formulating laws to regulate online hailed car platform companies, and requiring that the online hailing service must be provided by taxis and other vehicles with relevant licences, etc. Members offered views on the study being conducted by the Transport Department (TD), including the survey on the overall supply and demand of personalised point-to-point transport services, which covers the relevant demand of passengers and changes.

     The Working Group will continue to examine how to enhance personalised point-to-point transport services, so that taxis and other compliant vehicles can complement each other’s strengths in the provision of relevant services. The Working Group will also continue to advise on the TD’s study on the demand and supply, as well as listen to the views of stakeholders on the regulation of online hailed car platforms. After considering the study outcome and views of different parties, the Working Group will focus its discussion on the Government’s formulation of legislative proposals on the regulation of online hailed car platforms (including types and number of vehicles for providing compliant services, as well as licensing requirements for vehicles and drivers).

     The TAC and Working Group Chairman, Professor Stephen Cheung, said, “The Working Group will continue to offer views on the Government’s study to enhance personalised point-to-point transport services, with the objective to provide diverse services to the public, safeguard the interest of passengers, as well as facilitate the healthy and sustainable development of the services concerned in the long run. The Working Group will listen to the views of stakeholders, and encourages members of the public to provide precious information when being approached to take part in the survey.” 

     Set up by the TAC in July, the Working Group comprises a number of TAC members, representatives from relevant organisations/departments, namely the Insurance Authority and the Tourism Commission, as well as representatives from the Transport and Logistics Bureau and the TD. read more

The following is issued on behalf of the Major Sports Events Committee:
 
      The Major Sports Events Committee (MSEC) has awarded “M” Mark status to the New World Harbour Race 2024 (November 10).
 
      The Chairman of the MSEC, Mr Wilfred Ng, said today (November 6), “The Harbour Race, being Hong Kong’s most iconic water sports event, attracts swimmers and spectators from around the world to enjoy the beautiful scenery along both sides of the Victoria Harbour while participating in or watching the race. Like other ‘M’ Mark events, the Harbour Race will inject new vitality into local developments while further solidifying Hong Kong’s status as a capital of major sports events.”
 
     The “M” Mark System aims to encourage and help local “national sports associations” and private or non-government organisations organise more major international sports events and nurture them into sustainable undertakings. Sports events meeting the assessment criteria will be granted “M” Mark status by the MSEC. Funding support will also be provided to some events.
 
      For details of “M” Mark events, please visit www.mevents.org.hk. read more

     Following is a question by Dr the Hon Chan Han-pan and a written reply by the Acting Secretary for Commerce and Economic Development, Dr Bernard Chan, in the Legislative Council today (November 6):
 
Question:
 
     It has been reported that earlier on, a chain fitness and beauty group announced its “temporary closure”, and the Consumer Council subsequently received more than 1 700 complaints about prepayment mode of consumption, involving a total amount of about $60 million. On the other hand, it is learnt that at present, different countries and regions have different protection for prepaid services contracts. For instance, it is stipulated in New York State of the United States that prepaid services contracts of health clubs must be with a duration of not more than 36 months, with the services fees capped at US$3,600 (i.e. around HK$28,000) per annum, and that consumers may terminate the contracts on health grounds and apply for refunds; in Ontario of Canada, it is stipulated that personal development services contracts for sports, fitness, martial arts and dance activities, etc, must last for only one year, with an instalment payment option for which a maximum premium of 25 per cent is charged; in Taiwan, fitness centres are required to provide contract performance guarantee (e.g. by opening dedicated trust accounts) for 50 per cent of the fees charged in the contracts signed between the centres and the consumers. In this connection, will the Government inform this Council:
 
(1) whether the authorities will consider (i) setting an upper limit on the contract period and the amount of prepayment for prepaid services contracts, and allowing consumers to terminate the contracts on specified grounds; (ii) drawing reference from the model of the levy contributed under the Travel Industry Compensation Fund and setting up a compensation fund by imposing a fixed fee for each prepaid service contract transaction; and (iii) requiring fitness centres to provide contract performance guarantee by opening dedicated trust accounts, so as to strike a balance between safeguarding the rights of consumers and the interests of operators; if so, of the details and timetable; if not, the reasons for that; and
 
(2) as it is learnt that at present, prepayment consumption cases in Hong Kong are primarily handled by the Commerce and Economic Development Bureau, the Hong Kong Customs and Excise Department and the Consumer Council under the Trade Descriptions Ordinance (Cap. 362) and other relevant consumer contract laws, whether the authorities will, by drawing reference from the practices in other regions, set up a dedicated department to deal with issues concerning consumer rights or enhance the functions of the Consumer Council; if so, of the details and timetable; if not, how the authorities will enhance consumer protection and consumer education?
 
Reply:
 
President,
 
     The Government of the Hong Kong Special Administrative Region is highly concerned about the recent incident involving the temporary business suspension suddenly announced by a chain fitness and beauty group, and has formed an inter-departmental dedicated investigation team to follow up. The dedicated investigation team, which comprises the Commerce and Economic Development Bureau, the Security Bureau, the Customs and Excise Department (C&ED), the Hong Kong Police Force (Police) and the Consumer Council (Council), continues to closely monitor the developments of the incident. In particular, the C&ED and the Police are conducting intensive investigation from the perspectives of offences regarding the unfair trade practices under the Trade Descriptions Ordinance (Cap. 362) (the Ordinance) and whether other criminal offences are involved respectively.
 
     The reply to the various parts of the question is as follows:
 
(1) We are aware that different sectors of the community have put forward various suggestions in respect of offering better protection to consumers who make prepayments (including imposing a cap on the length of prepayment contracts and prepayment amounts and setting up trust accounts), after this incident of the chain fitness and beauty group announcing temporary business suspension. We will conduct an in-depth study into different suggestions and consider their pros and cons and feasibility, with reference to the experience of this incident, other relevant factors (including the economic environment, the operating situation of relevant industries and relevant complaint and enforcement statistics) and the experience in other jurisdictions, with a view to formulating appropriate strategies to strengthen the protection of consumers’ rights and interests.
 
(2) Currently, various laws in Hong Kong protect consumers’ rights and interests. Among others, the Ordinance covers goods and services, and prohibits traders from subjecting consumers to unfair trade practices, including false trade descriptions, misleading omissions, aggressive commercial practices, bait advertising, bait-and-switch and wrongly accepting payment. The Ordinance is applicable to the trade practices of both physical and online traders.
 
     The C&ED is the principal enforcement agency of the Ordinance, and adopts a three-pronged approach, covering enforcement actions, compliance promotion and publicity and public education, to combat unfair trade practices proactively. Meanwhile, the Council endeavours to study and promote the protection of consumers’ rights and interests, and carries out its statutory functions in accordance with the Consumer Council Ordinance (Cap. 216), including handling complaints from consumers and resolving disputes between consumers and traders.
 
     The C&ED and the Council have been maintaining close communication with each other, and have been collaborating with other government departments and social service organisations, etc. to jointly promote the protection of the rights and interests of consumers. Currently the Government has no plan to change the relevant practices or expand the Council’s statutory functions.
 
     The C&ED and the Council will continue to adjust and strengthen the strategies and work in respect of protecting the rights and interests of consumers, having regard to the complaints and the enforcement situation. In particular, the publicity and public education work includes:
 
(i) Conducting talks and workshops for consumers, with a view to enhancing their understanding of common unfair trade practices and sharing with them tips about “smart consumption”, so as to prevent them from falling into sales pitfalls.
 
     In particular, targeting common unfair trade practices, the C&ED conducts talks for consumers (especially the elderly) and joins hands with the Police, District Councils and District Fight Crime Committees to carry out promotion by distributing promotional leaflets to the elderly, with a view to enhancing their understanding of the Ordinance and awareness of “smart consumption”.
 
(ii) Conducting dedicated educational programmes to enhance the capability of different groups of consumers (especially the elderly, persons with special needs and students) to guard against unfair trade practices.
 
     In particular, the Council conducts the Educator Scheme for Senior Citizens, which provides consumer education training to soon-to-be retirees or retirees so as to equip them to host consumer educational talks for other elderly in the community. The Council’s Support Programme for Persons with Special Needs, through virtual reality role-play simulations that cover different scenarios (for example those about the sales pitfalls of fitness and beauty centres), allows persons with special needs to better grasp the skills for guarding against common sales pitfalls. In addition, the Council also organises consumer education programmes for primary school students and secondary school students respectively, including launching the brand new programme of Smart Consumption Academy (which comprises a project study, an online quiz, a social media post creation competition and an ambassador scheme) dedicated for secondary school students starting from the 2023/24 school year so as to cater to the evolving educational modes.
 
(iii) Disseminating consumer information to enable consumers to make informed consumption decisions.
 
     In particular, the Council publishes product tests, service surveys, consumption tips and complaint case sharing, etc, in its CHOICE Magazine, providing practical consumer information to different groups of consumers. In addition, the C&ED and the Council have also been utilising social media, such as Facebook, Instagram, YouTube and WeChat, to issue timely consumer alerts and promotional videos, etc, so as to provide consumers with the latest consumer information.
 
     Regarding consumption involving prepayments, the C&ED from time to time reminds consumers to make purchases with reputable traders, give prudent consideration before making decisions for consumption involving prepayments and, after purchasing a service, keep the transaction receipts and relevant records, which can serve as the basic information for lodging a complaint if needed in the future.
 
     In addition to the publicity and public education work above, the C&ED will continue to spare no efforts to strengthen the enforcement actions in respect of the Ordinance which, coupled with the sentences imposed by the court on prosecution cases, impose a deterrent effect on unscrupulous traders. The C&ED will at the same time continue to proactively carry out compliance promotion so as to enhance traders’ understanding of the legal requirements under the Ordinance and the measures that should be taken for complying with the Ordinance. These efforts seek to combat unfair trade practices at source and to provide consumers with a safe consumption environment. read more