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     Following are the opening remarks by the Secretary for Justice, Mr Paul Lam, SC, at the forum titled Hong Kong – The Common Law Gateway for UAE Businesses to China and Beyond in Dubai, the United Arab Emirates (UAE), today (May 22, Dubai time):

His Excellency Abdullah (Minister of Justice of the UAE, Mr Abdullah bin Sultan bin Awad Al Nuaimi), His Excellency Mohammad (President and CEO of the Dubai Chambers, Mr Mohammad Ali Rashed Lootah), His Excellency Ambassador Zhang (Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to the UAE, Mr Zhang Yiming), distinguished guests, ladies and gentlemen,

     Good morning. I would like to begin by welcoming all of you to this forum co-organised by the Department of Justice, the Hong Kong Trade Development Council and the Hong Kong Economic and Trade Office in Dubai. And of course, I wish to express my gratitude to the Dubai Chambers as a co-organiser, and all the supporting organisations including entities coming from Hong Kong and UAE.

     In the next few minutes, I wish to tell you very briefly who we are, why we are here, and what you are going to hear from us this morning. Now, we are the Hong Kong delegation led by me, consisting of more than 30 persons coming from both the Government and the private sector. In so far as the Government is concerned, apart from colleagues coming from the Department of Justice, we have the Director-General of Invest Hong Kong, which is responsible for promoting overseas investment in Hong Kong. And we have colleagues coming from the Economic and Trade Office in Dubai. We also have the leader of the Hong Kong Trade Development Council, which is a statutory body of Hong Kong responsible for promoting trade and development.

     Now turning to the private sector. I am very honoured to be joined by the leaders of the two legal professional bodies from Hong Kong, namely the Hong Kong Bar Association and the Law Society of Hong Kong. And we also have very top lawyers specialised in different areas ranging from commercial, merger and acquisition, setting up of companies, IPO (initial public offering), up to, for example, dispute resolution. In addition, we also have the person-in-charge of the leading arbitration institution from Hong Kong and the person-in-charge of the listing division of the Hong Kong Stock Exchange. So we do have a diversity of top professionals coming from my jurisdiction.

     We are here today to accomplish a very important mission. The mission is to promote and to establish a better and closer relationship between UAE and Hong Kong, in particular in the area of legal co-operation. This very important mission has to be considered in the context of Hong Kong being a special administrative region of China.

     The UAE and China have a very strong history of friendship, dating back to the days of the ancient Silk Road. The modern Silk Road is under construction between the two countries. And in this very important construction work, Hong Kong plays a very significant role. Under the principle of “one country, two systems”, Hong Kong enjoys many unique advantages and characteristics, one of which is our common law system. Hong Kong is the only common law jurisdiction in China. And that is why under various important national development plans of China, Hong Kong has been assigned to be the international legal and dispute resolution services centre. Hong Kong has very often been described as a “super connector” and a “super value-adder” between China and countries outside China. The natural question is how exactly can Hong Kong perform the role as a “super connector”? How to connect the rest of the world with China? And at the same time, how can we add value to co-operation between China and other countries?

     And that takes me to the last point – what you are going to hear from us today. The theme of today is Hong Kong – The Common Law Gateway for UAE Businesses to China and Beyond. It is a gateway which serves as a platform that can take you from your country to China. And I suppose we can visualise the gateway as a highway in real life, but it’s a very special and very unique highway in the sense that we can ensure that you will have fast, convenient and safe access to China. And more importantly, on the way, we will have a lot of service stations to ensure that you will have a pleasant journey. What I really mean is that, our legal system and our legal services can provide or act as a one-stop shop. We are ready, willing and able to provide top-quality, user-friendly and reliable legal services to enable you to explore business and investment opportunities, not just in Hong Kong, but in China as a whole. Starting from the point you consider to set up a business venture in Hong Kong, using it as a platform for investing in China for example, to the point of time where you wish to expand your business by IPOs, and to the moment when, unfortunately, some disputes arise and you have to resolve your dispute, and to the point you decided to reap the profit or fruits of your investment by leaving or terminating the relationship. So these are the sort of one-stop shop services that Hong Kong’s common law system can offer, which cannot be found elsewhere.

     Now, I hope I have said enough to whet your appetite. Many eminent speakers from the delegation will provide you with the essential details and information in due course.

     The important thing about this forum, it is not just about the provision of information or exchange of views. In my view, what is crucial about this trip is that it has another more important meaning. In order to build and establish and maintain a long-term friendship and relationship, I truly believe that what is crucial is mutual understanding, mutual respect, and mutual trust and confidence. And I believe sincerity is the key to all these matters. I am not sure whether you have noticed, I have deliberately chosen to wear a tie with the colour green, white and black this morning, because I know that these three colours are of great importance to your culture and to your country, representing core values such as growth, purity, peace, power and strength. And these happen to be very important values to the Chinese people as well.

     You may wonder, what about the red colour, which also appears on your national flag? Because your national flag is of four colours – red, white, green and black. I have black, green and white on me. And apart from being the fourth colour of the national flag, the red colour is of great importance to Chinese people. But I don’t feel I need to wear any red. It is because the red colour is represented and reflected by the very strong passion and the sincere wish and the heart of each and every member of my delegation to make friends in UAE and with all of you today.

     So on this note, I wish to repeat my gratitude to all my friends in UAE who make this event successful. And I wish you a very fruitful and enjoyable forum, and I hope to see you at lunch. Thank you very much. read more

     The Government welcomed the passage of the Inland Revenue (Amendment) (Tax Concessions and Two-tiered Standard Rates) Bill 2024 by the Legislative Council today (May 22). The Bill gives effect to the Government’s proposals announced in the 2024-25 Budget and the 2023 Policy Address, which include:

1. implementing a two-tiered standard rates regime for salaries tax and tax under personal assessment starting from the year of assessment 2024/25. In calculating the amount of salaries tax or tax under personal assessment at standard rates, the first $5 million of net income will continue to be subject to the standard rate of 15 per cent while the portion exceeding $5 million will be subject to the standard rate of 16 per cent;

2. reducing salaries tax, tax under personal assessment and profits tax for the year of assessment 2023/24 by 100 per cent, subject to a ceiling of $3,000 per case; and

3. allowing an additional deduction ceiling amount of $20,000 for home loan interest or domestic rents, on top of the basic deduction ceiling ($100,000), for a taxpayer if specified conditions (including the taxpayer should reside with his/her newborn child in Hong Kong for a continuous period of not less than six months, or a shorter period that the Commissioner of Inland Revenue considers reasonable in the circumstances) are met starting from the year of assessment 2024/25. Each taxpayer may be allowed an additional deduction ceiling amount for a maximum of 19 years of assessment. 

     The Secretary for Financial Services and the Treasury, Mr Christopher Hui, said, “The Government takes into account various factors when adjusting different tax measures. In addition to balancing economic and social needs, we are also committed to maintaining the competitive advantage of a low and simple tax regime. The proposed two-tiered standard rates regime is expected to bring about an additional revenue of $905 million per annum for the Government, affecting only 0.6 per cent of taxpayers. We believe that it will not have adverse impact on Hong Kong’s tax competitiveness and attractiveness to talent. On the other hand, the one-off tax concessions will benefit about 2.06 million taxpayers chargeable to salaries tax and tax under personal assessment as well as about 160 000 tax-paying businesses. The additional deduction ceiling amount for home loan interest and domestic rents will benefit all taxpayers meeting the specified conditions, alleviating their financial burden of housing.”

     The Bill as passed will be gazetted on May 31, 2024. The one-off tax concessions will be reflected in taxpayers’ final tax payable for the year of assessment 2023/24.  Moreover, in calculating the provisional salaries tax for the year of assessment 2024/25, the Inland Revenue Department will determine the amounts of home loan interest and domestic rents to be allowed based on the information provided by eligible taxpayers, and apply the two-tiered standard rates as appropriate. read more

The following is issued on behalf of the Pay Trend Survey Committee:
 
     The Pay Trend Survey Committee (PTSC) met today (May 22) to consider the findings of the 2024 Pay Trend Survey (PTS).
              
     The verified survey findings indicate that the following average pay adjustments have been awarded by the surveyed companies over the 12-month period from April 2, 2023, to April 1, 2024:
 

		Basic Pay Indicator	+	Additional Pay Indicator	=	Gross Pay Trend Indicator
Lower Salary Band (below $25,815 per month)	:	5.26%	+	1.37%	=	6.63%
Middle Salary Band ($25,815 – $79,135 per month)	:	5.03%	+	0.32%	=	5.35%
Upper Salary Band ($79,136 – $159,130 per month)	:	3.63%	+	1.42%	=	5.05%

 
     The 2024 PTS was conducted by the Pay Survey and Research Unit of the Joint Secretariat for the Advisory Bodies on Civil Service and Judicial Salaries and Conditions of Service based on an improved methodology as approved by the Chief Executive-in-Council in March 2007.

     The survey findings reflect the pay trend in 113 surveyed companies covering 134 376 employees over the 12-month period from April 2, 2023, to April 1, 2024. The survey takes into account adjustments to basic salary and additional payments awarded to employees of the surveyed companies attributable to factors in relation to the cost of living, general prosperity and company performance, general changes in market rates, merit and inscale increment, in accordance with the approved survey methodology.
 
     A breakdown of the 113 companies by size is as follows:
 

	No. of Companies
Larger companies (employing 100 or more staff)	83 (73%)
Smaller companies (employing 50 – 99 staff)	30 (27%)
Total :	113 (100%)

 
     The distribution of the 134 376 employees by the three salary bands is as follows:
 

	No. of Employees
Lower Salary Band (below $25,815 per month)	57 947 (43%)
Middle Salary Band ($25,815 – $79,135 per month)	65 323 (49%)
Upper Salary Band ($79,136 – $159,130 per month)	11 106 (8%)
Total :	134 376 (100%)

 
     The PTSC met today to verify and consider the 2024 PTS Report. The two representatives of the Standing Commission on Civil Service Salaries and Conditions of Service, the representative of the Standing Committee on Disciplined Services Salaries and Conditions of Service, the Secretary General of the Joint Secretariat for the Advisory Bodies on Civil Service and Judicial Salaries and Conditions of Service, the two representatives of the Civil Service Bureau, the two Staff Side Representatives of the Senior Civil Service Council, the three Staff Side Representatives of the Model Scale 1 Staff Consultative Council, the two Staff Side Representatives of the Police Force Council and the two Staff Side Representatives of the Disciplined Services Consultative Council validated the survey findings.
 
     The meeting was chaired by the Chairperson of the PTSC, Mr Laurence Li, SC, who is a member of the Standing Commission on Civil Service Salaries and Conditions of Service.
                  
     Mr Li said, “The 2024 PTS was conducted in accordance with the agreed methodology and in a professional and objective manner. The PTSC will submit the Pay Trend Survey Committee Report to the Government for consideration.”  
 
     “The relevant pay trend indicators are yielded from the pay trends in the private sector companies as revealed by the survey. Civil service pay adjustment is, however, a separate matter. I understand that in accordance with the established practice, the Chief Executive-in-Council will take into account the pay trend indicators derived from the PTS and other pertinent considerations before making a decision on the 2024-25 civil service pay adjustment,” he added.
 
     Mr Li expressed the PTSC’s sincere appreciation for the co-operation and robust support rendered by the companies to the Pay Survey and Research Unit. read more

The following is issued on behalf of the Hong Kong Monetary Authority:

Exchange Fund Notes tender results
**********************************

Tender date	:	May 22, 2024
Paper on offer	:	EF Notes
Issue number	:	02Y2605
Issue date	:	May 23, 2024
Maturity date	:	May 26, 2026
Coupon		3.77% p.a.
Competitive Tender Result
Amount applied	:	HK$2,850 MN
Amount allotted	:	HK$1,200 MN
Average price accepted (yield)	:	99.76 (3.93 PCT)
Lowest price accepted (yield)	:	99.60 (4.02 PCT)
Pro rata ratio*	:	About 4 PCT
Average tender price (yield)	:	99.59 (4.03 PCT)
Non-competitive Tender Results (for applications submitted through Hong Kong Securities Clearing Company Limited)
Amount applied	:	NIL
Amount allotted	:	NIL
Allotment Price (yield)	:	NIL
Pro rata ratio*	:	NIL

 
* “Pro rata ratio” refers to the average percentage of allotment with respect to each tender participant’s tendered amount at the “lowest price accepted” level. read more

     Following is the speech by the Secretary for Labour and Welfare (SLW), Mr Chris Sun, on moving the second reading of the Social Workers Registration (Amendment) Bill 2024 at the Legislative Council today (May 22):

President,

     I move the second reading of the Social Workers Registration (Amendment) Bill 2024. The objective of the Bill is to improve the governance of the Social Workers Registration Board to ensure that the Board acts in the public interest and fosters the progressive development of the social work profession.

     Registered social workers (RSWs) shoulder great responsibilities. They bear social responsibilities towards the clients with whom they are in frequent contact. As social workers have the trust of their clients and exert on them significant influence, they are more obliged to honour the rule of law as well as consciously safeguard national security, social order and public interest, while performing their duties in a fair and impartial manner to set a good example. The Social Workers Registration Ordinance empowers the Board to handle registration of social workers, disciplinary control and related matters. Apart from being empowered by law to handle registration of social workers and disciplinary matters, the Board, in exercising its public powers, bears responsibilities towards the clients of RSWs and the community as a whole, and has a duty to safeguard national security and act in the public interest.

     Noting that the Board’s conduct and decisions in recent years have seriously deviated from the spirit of the Ordinance in the areas of social worker registrations, disciplinary control and professional development, the Government considers that there is an urgent need to improve the governance of the Board so that it can more effectively protect the public interest and safeguard national security. In this connection, the Government proposes the following amendments to the Ordinance:

(1) The Bill will expand the membership of the Board for broader and more balanced participation. I wish to stress that upon the Board’s reconstitution, RSWs will continue to account for more than half of the seats of the Board with at least 14 RSWs among the 27 members. On the premise of ensuring professional self-regulation, the Government will appoint RSWs of diverse backgrounds and positions to the Board to complement Board members returned by election, so that different voices within the social work profession will be brought into the Board and reflected in its decisions. In addition, appointing more members from other professions and prominent personalities from different sectors of the community will bring in a broader, more diverse and balanced participation in the Board to provide the checks and balances required for ensuring that the public interest will be safeguarded;

(2) The Bill will enable prompt removal of RSWs convicted of serious offences. Registrations of social workers are renewed annually. Where a social worker has committed a serious offence but his/her registration has not yet expired, his/her case would normally be considered upon the next renewal of his/her registration according to the current practice. Such practice cannot ensure that the interest of clients would be protected and is not in line with the legislative intent. The objective of the new mechanism is to ensure that the Board can promptly deal with cases of registrations by social workers who have committed serious offences. I must emphasise that we have no intention to bar ex-offenders from becoming social workers across the board. Given that social workers shoulder social responsibilities towards clients of disadvantaged groups, we consider that the Board needs to strike a proper balance between the interest of individual applicants for registration and the public interest, by promptly and meticulously processing applications for registration involving serious offences, so as to live up to the expectations of society;

(3) The Bill will lend clarity to the effective date of the Code of Practice for Registered Social Workers and the appointment to the Disciplinary Committee Panel, which will be the date on which the SLW publishes a notice in the Gazette. This will enable the SLW to better perform his gate-keeping role;

(4) The Bill will empower the Board to set continuing professional development (CPD) requirements for the social work profession. The objective of CPD is to ensure that the social work profession can meet the changing service needs of the community and continue to serve the best interest of the needy, while promoting the long-term and sustainable development of the social work profession. I wish to point out that the relevant amendment provisions only empower the Board to set CPD requirements, but do not prescribe an implementation timetable. The content, approach and timetable of the future CPD requirements of RSWs will be devised by the Board, the majority of which will be RSWs. I believe that the Board will strike a balance among factors such as the sector’s manpower and workload situation as well as professional development need in taking forward the work on this front in a pragmatic and orderly manner, with a view to promoting the long-term development of the social work profession; and

(5) The Bill will require all members of the Board to take an oath. They must sign an oath before the assumption of office, affirming that they will uphold the Basic Law and bear allegiance to the Hong Kong Special Administrative Region of the People’s Republic of China, and return the signed oath within the period specified by the SLW. A person must not take up the office or continue to hold the office as a member of the Board if he/she declines or neglects to take the oath, or if the SLW is satisfied that the person does not genuinely and truthfully take the oath. In addition, the breach of the oath will be a valid ground for the Chief Executive to declare a Board member’s office to be vacant.

     We briefed the Legislative Council (LegCo) Panel on Welfare Services on May 16, 2024, on the proposal, and Members supported the Bill. I am also pleased to learn that the social welfare sector, the LegCo and various sectors of the community, including some members of the Board, are supportive of our efforts in improving the governance of the Board as soon as possible.

     The Government will fully complement the work of the LegCo in scrutinising the Bill, with a view to seeking Members’ support and early passage of the Bill, so that the Board will be put back on the right track the soonest possible. President, I so submit.

     Thank you, President. read more