Following is a question by the Hon Carmen Kan and a written reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (November 15):

Question:

     Regarding the data governance system, will the Government inform this Council:

(1) given that as proposed in the latest Policy Address, the Government will publish administrative guidelines to facilitate data flow and ensure data security before the end of 2023, of the nature of the administrative guidelines; as there are views that data flow and data security are only two of the essential elements of the data governance system, whether the authorities will consider enacting comprehensive regulations on data governance; if so, of the details; if not, the reasons for that;

(2) given that as stated in the latest Policy Address, the Government (i) signed a Memorandum of Understanding with the Mainland authorities in June 2023 to foster secure cross‑boundary flow of Mainland data within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and (ii) is liaising with the authorities of the Guangdong Province to adopt an early and pilot implementation approach in the GBA to streamline the compliance arrangements for the flow of personal data from the Mainland to Hong Kong in order to facilitate the provision of cross‑boundary financial and medical services within the GBA, whether the authorities have plans to drive the flow of people, goods and capital within the GBA by the flow of information; if so, of the specific plans and timetable for the relevant measures; if not, the reasons for that;

(3) as the Government indicated in reply to a question raised by a Member of this Council on June 7, 2023 that it might not be necessary to centralise all the data on one platform, and the Government would develop the Consented Data Exchange Gateway (CDEG) to facilitate the interflow of data among government departments, with the target of rolling out CDEG by the end of 2024, of the latest progress of the relevant work; and

(4) in tandem with facilitating data interchange to foster the development of the innovation and technology industry, the financial industry, etc. (for example, the Commercial Data Interchange of the Hong Kong Monetary Authority will be connected to CDEG by the end of 2023), of the safeguards for cyber and data security the authorities have in place to realise the vision of secure flow and orderly sharing of data?

Reply:

President,

     Having consulted the Security Bureau, Financial Services and the Treasury Bureau and the Hong Kong Monetary Authority (HKMA), my reply to the questions raised by the Hon Carmen Kan is as follows:

(1) Data governance encompasses multiple elements, including the integration, application, opening up and sharing of data; data security; infrastructure; industry development; and alignment with different standards and regulatory frameworks. The Government has been developing a data governance system that suits the circumstances of Hong Kong under a multi-pronged strategy covering policies, legislation, guidelines, infrastructure, etc.

     Data flow and data security are key elements in promoting and enhancing data governance. In this regard, "The Chief Executive's 2023 Policy Address" announced that the Government will publish administrative guidelines to facilitate data flow and ensure data security, with the objective to elaborate on our management principles and strategies concerning the relevant elements of data governance and to propose an action plan for further promoting the interchange of data and related security safeguards, covering areas like top-level design, policies, guidelines, regulations, infrastructure, and cross-boundary data flow. We will publish the aforementioned management measures by the end of this year.

(2) Facilitating the secure cross-boundary flow of Mainland data in the Guangdong-Hong Kong-Macau Greater Bay Area (GBA) is a key initiative to promote the development of digital economy and smart city in the three places. The Innovation, Technology and Industry Bureau and the Cyberspace Administration of China entered into the Memorandum of Understanding on Facilitating Cross-boundary Data Flow Within the Guangdong-Hong Kong-Macao Greater Bay Area (MoU) in June 2023, with a view to fostering the safe and orderly flow of Mainland data to Hong Kong under the national management framework on safeguarding the security of cross-boundary data. This initiative will not only reduce the compliance costs of cross-boundary data flow for enterprises, but will also promote the digital economy and scientific research development in the GBA, and thus is conducive to facilitating Hong Kong's integration into the GBA and the nation's overall development, as well as building Hong Kong into an international data hub.

     In accordance with the framework set out in the MoU, the Office of the Government Chief Information Officer (OGCIO) is liaising with the Cyberspace Administration of Guangdong Province to strive for adoption of the early and pilot implementation approach as soon as possible to streamline the compliance arrangements for personal information flow from the Mainland to Hong Kong. The initial early and pilot implementation arrangement is expected to be first applied to high-demand cross-boundary services such as finance, credit checking and healthcare, so as to promote the provision of relevant cross-boundary services in the GBA and bring convenience and facilitation to the public and businesses. We will consider extending the facilitation measure to other sectors in an orderly manner having regard to the effectiveness and experience in the first stage of the pilot implementation of the arrangements.

(3) OGCIO is developing the Consented Data Exchange Gateway (CDEG) and will introduce in the first instance the function of interfacing with the HKMA's Commercial Data Interchange (CDI) by end-2023 to facilitate the sharing of data from government departments to financial institutions upon the authorisation of their enterprise clients. OGCIO will roll out other functions of CDEG before end-2024 for citizens to authorise government departments to share their personal data within the government to facilitate their use of digital government services. Following enhancement to the functionalities of "iAM Smart" platform and by providing one-time authorisation on "iAM Smart", citizens can in future make use of CDEG to directly access their personal information in various government services and leverage the "iAM Smart" e-ME function for auto-filling of personal information when applying for other government services, hence obviating the need for repetitive input or submission of the same information, thereby realising the goal of achieving a "single portal for online government services". 

(4) The Government has devised a multi-layered mechanism on data security protection while promoting the sharing and application of data. The mechanism focuses on data governance, classification, grading, protection, audit, risk assessment, monitoring and contingency plans, etc.

     For instance, CDEG will not store any data shared between bureaux and departments (B/Ds). The shared data will only be saved on respective systems of B/Ds, which are required to conduct regularly risk assessment and audit concerning their information systems and data security to safeguard the government systems and data security. With regard to online transmission, CDEG will be linked to the systems of various B/Ds and the CDI with encryption. CDEG will also utilise the Shared Blockchain Platform of OGCIO to ensure that the records of authorisation by citizens and data sharing between B/Ds cannot be tampered. When developing the CDEG, OGCIO had consulted the Office of the Privacy Commissioner for Personal Data and engaged independent third parties to conduct security risk assessments and audit as well as privacy impact assessments to ensure compliance with the Personal Data (Privacy) Ordinance.

     On the other hand, for CDI launched by the HKMA, there are rules requiring participating banks to ensure that the scope and use of data collected comply with the purposes agreed by the small and medium enterprises (SMEs) as owners of the data. At the technical level, CDI connects banks and data providers with encryption, while the commercial data will not be stored in the system of CDI. A number of corresponding information security requirements are also put in place to protect the privacy of SMEs and to ensure data security. Meanwhile, CDI has a strict regulatory mechanism to protect customers. 

     To address potential security risks associated with critical infrastructure in different sectors, the Critical Infrastructure Security Coordination Centre (CISCC) and the Cyber Security Centre (CSC) of the Police Force operate round the clock. The CISCC seeks to strengthen self-protection and restoration capabilities of the critical infrastructure through public-private sector co-operation, risk management, on-site security inspections, etc. Meanwhile, the CSC conducts timely cyber threat audits and analyses to prevent and detect cyber attacks against the critical infrastructure. 

     At the same time, the Government will strive to enhance the protection of cybersecurity of critical infrastructure (including energy, telecommunications, transportation, financial institutions). Among other things, the Government will enact legislation to stipulate the cybersecurity obligations of critical infrastructure operators. The Government is working on the legislative proposals and will consult the Panel on Security of the Legislative Council (LegCo) and relevant stakeholders in due course. The target is to introduce the bill into the LegCo within 2024.

     Police today (November 15) appealed to the public for information on a woman who went missing in Kwai Chung.

     Yuen Yan-shin, aged 82, went missing after she left her residence on Shek Yam Road yesterday (November 14) afternoon. Her family made a report to Police last night.

     She is about 1.5 metres tall, 60 kilograms in weight and of medium build. She has a round face with yellow complexion and short grey hair. She was last seen wearing an white hat, a purple long-sleeved T-shirt, black and white pants, black shoes and carrying a brown crossbody bag.

     Anyone who knows the whereabouts of the missing woman or may have seen her is urged to contact the Regional Missing Persons Unit of New Territories South on 3661 1176 or 6383 4337 or email to rmpu-nts-2@police.gov.hk, or contact any police station.

    

     â€‹The 1st National Student (Youth) Games (NSYG) concluded today (November 15). The Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, complimented Hong Kong's athletes on their outstanding performances and achievements of winning a total of 48 medals.
     
     Mr Yeung said, "Young Hong Kong athletes showcased their indomitable spirit and gave full play to their strengths at the NSYG. We are thrilled by their exemplary performances. Carrying on the tradition established by their predecessors and seizing the opportunities to accumulate valuable experiences, these athletes have reached new heights and will become pillars of Hong Kong's sports sector. I hope they will continue to challenge themselves and achieve more accomplishments in future."
    
     Jointly organised by the Ministry of Education of the People's Republic of China, the General Administration of Sport of China and the Communist Youth League of China, the 1st NSYG was held in Nanning, Guangxi Zhuang Autonomous Region. The Hong Kong Special Administrative Region (HKSAR) Government sent a delegation of 720 young athletes to take part in the finals of 34 sports of the Games, including seven sports in the School Category and 27 sports in the Open Category. This was the largest delegation of athletes that the HKSAR sent to large-scale sports games on the Mainland. In total, the athletes have won 10 gold medals, 15 silver medals and 23 bronze medals in the NSYG.

     Hong Kong Customs on November 10 seized about 4 000 items of suspected counterfeit goods with an estimated market value of about $1.6 million at the Tuen Mun River Trade Terminal Customs Cargo Examination Compound.

     Through risk assessment, Customs on that day inspected a 40-foot container, declared as carrying daily necessities and arriving in Hong Kong from Nansha, Guangdong. After inspection, Customs officers found the batch of suspected counterfeit goods, including footwear, watches, clothes and mobile phones, therein.

     An initial investigation revealed that the batch of suspected counterfeit goods would be transhipped to overseas regions. 

     An investigation is ongoing.

     Customs will continue to combat cross-boundary counterfeit goods activities with stringent enforcement action based on risk assessment and intelligence analysis.

     Under the Trade Descriptions Ordinance, any person who imports or exports any goods to which a forged trademark is applied commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years. 

     Members of the public may report any suspected counterfeiting activities to Customs' 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002/).

  

     â€‹Following is a question by the Hon Jimmy Ng and a written reply by the Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, in the Legislative Council today (November 15):

Question:
 
     As pointed out in a research publication of the Legislative Council Secretariat, Hong Kong faces quite a number of challenges in developing the sport industry, including limited tax incentives to encourage resources from the business and private sectors, and few measures available to promote sport sponsorship. On promoting sports development, will the Government inform this Council:
 
(1) of the amount of tax deductions available to Hong Kong enterprises relating to expenses on sport sponsorship in each of the past five years; whether it will provide additional tax concessions for enterprises' expenses on sport sponsorship, such as allowing a 200 per cent tax deduction for the amount of sponsorship for sports events; if so, of the details; if not, the reasons for that;
 
(2) as the Chief Executive indicated in the 2023 Policy Address that the Government will collaborate with the Sports Federation & Olympic Committee of Hong Kong, China to organise Festival of Sport events on the Sport For All Day, and will consider opening its sports facilities for free admission on specific festive occasions every year, where thematic sports days will be held for public participation, of the details of relevant events and initiatives;
 
(3) whether it has assessed the effectiveness of the work of promoting urban sports, such as 3 on 3 basketball, sport climbing and skateboarding; and
 
(4) as the Government introduced various measures to enhance the "M" Mark System (the System) in April this year, of the number of applications for "M" Mark events following the introduction of these measures, and whether the average amount of funding support for each event has increased accordingly compared with that before the introduction of the enhancement measures; whether it has plans to further increase the amount of funding for each event under the System; if so, of the details; if not, the reasons for that?

Reply:

President,

     â€‹It is the Government's policy to promote the development of sports through a five-pronged approach, namely, by promoting sports in the community, supporting elite sports, promoting Hong Kong as a centre for major international sports events, enhancing professionalism and developing sports as an industry; which include strengthening the support to elite athletes, attracting major international sports events to Hong Kong and further promoting sports development through enhanced professionalism in the sports sector and the development of sports as an industry. In addition, we endeavour to promote sports in the community and in schools, build more and enhance sports and recreation facilities, and encourage collaboration among communities in fostering a strong sporting culture.

     â€‹My reply to the questions raised by the Hon Jimmy Ng is as follows:

(1) At present, if a commercial organisation sponsors a sports event in order to promote its own business, the sponsorship concerned will be treated as marketing expenses and can be used to apply for tax deduction. Given the large number of sports events of varying scale, we have not maintained information on tax deduction relating to sports sponsorship expenses by commercial organisations. Upon a comprehensive review, including the implications on other charitable services following the introduction of special tax deduction under a certain policy, the Government has decided not to introduce new tax concessions for commercial organisations sponsoring local sports organisations for the time being.

(2) The Leisure and Cultural Services Department (LCSD) has been organising the "Sport For All Day" every August since 2009 to encourage people of all ages and abilities to take part in sports activities. On the event day, a series of free sports and recreation programmes will be offered at designated LCSD venues across the 18 districts, while most of the LCSD's sports facilities will be open for free use by the public. In a bid to further promote "Sport for All" and encourage the public to participate in sport, the LCSD will collaborate with the Sports Federation & Olympic Committee of Hong Kong, China (SF&OC) to organise Festival of Sport events on the "Sport For All Day" at government venues and private venues such as shopping centres. We will announce the details in due course after discussion with the SF&OC on the event arrangements. The LCSD will also consider opening its sports facilities for free admission on specific festive occasions every year and holding thematic sports days (e.g. distance race) for public participation, so as to achieve synergy and provide more opportunities for the public to use the LCSD sports facilities free of charge, and thereby help them develop a healthy lifestyle of regular exercise.

(3) To further promote sports in the community, the Chief Executive announced in the 2022 Policy Address that the Government would work with the sports sector, schools and other sectors to promote urban sports that are popular among young people in recent years, such as 3-on-3 basketball, futsal, breaking, skateboarding and sport climbing. We will provide subsidy to those schools and organisations which are interested in participating in the promotion programme for organising training courses as well as activities on urban sports. In the first phase, we will work with schools in organising training courses and activities after class at school campus, with an aim to provide 8 000 students with the opportunity to take part in urban sports every year starting from the 2023/24 academic year. We will review the promotion programme in due course and refine relevant measures when necessary in order to optimise its effectiveness. 
 
     In addition, to encourage the participation in sports by members of the public and promote urban sports, the LCSD plans to organise some 370 urban sports programmes in 2023-24, including 3-on-3 basketball, sport climbing, breaking, skateboarding and futsal, which are expected to be participated by about 15 300 people. For the Corporate Games 2023, futsal has been included as one of the competition events and a substitute for 7-a-side soccer. Moreover, the LCSD will retain futsal events and add some urban sports (such as sport climbing, breaking and skateboarding) as demonstration competitions in the 9th Hong Kong Games, and substitute 5-on-5 basketball competition by 3-on-3 basketball which is more popular among the youth. At the, the LCSD provides subvention of around $10 million through the Sports Subvention Scheme to relevant national sports associations of urban sports for their organisation of over 400 programmes, which are expected to be participated by about 30 000 people. The LCSD will closely monitor the implementation of the programmes and encourage wider public participation in order to evaluate the effectiveness of the programmes.

(4) The Government has launched various measures on April 1, 2023 to enhance the "M" Mark System with a view to attracting more major international sports events to be held in Hong Kong. The measures include increasing the funding ceiling for each event to $15 million, lifting the quota of "M" Mark events to be organised by the same applicant each year, and relaxing the eligibility of the applicants for "M" Mark events to cover events organised by national sports associations (NSAs) as well as other private or non-governmental organisations (NGOs).
 
     Responses have been positive since the implementation of the enhancement measures. From April to October 2023, we received more than 20 applications. It is envisaged that about 17 major international sports events being awarded "M" Mark status will be held in Hong Kong in this financial year, which is the highest number ever. It represents an increase of three events (around 21 per cent) as compared to a maximum of 14 events per year in the past. Among these events are the Aramco Team Series Hong Kong as well as the Hong Kong Tennis Open, which are staged in Hong Kong for the very first time. So far, nine events have taken place and five events have been granted a matching fund up to a ceiling of $15 million. With the enhancements of the "M" Mark System, the average subsidy per event is approximately $7.66 million, which is a significant increase as compared with $1.64 million per event before the introduction of the enhancement measures. We will continue to closely monitor the effectiveness of the enhancement measures and review the "M" Mark System in order to meet the needs of events of different scales. With the above, we hope to encourage NSAs, private enterprises and other NGOs to bid for the hosting of more major international sports events in Hong Kong.