On September 17 and 18, 2025, Hong Kong’s Chief Executive Li Ka-chiu took center stage at the Legislative Council, unveiling his fourth Policy Address and fielding a barrage of questions from lawmakers the following day. At the heart of his agenda: a sweeping effort to fortify the city’s governance by introducing a new "Departmental Head Accountability System," while also tackling economic headwinds and labor market anxieties that have gripped both public officials and ordinary citizens.
Li’s address, as reported by Ta Kung Pao and Hong Kong Commercial Daily, zeroed in on the need for a more robust accountability framework among senior civil servants. "Hong Kong’s civil service team ranks second worldwide in efficiency, but there’s always room for improvement," Li said at a press conference following his speech. He likened the new system to having "generals managing soldiers," emphasizing that department heads must take full command of their teams and the systems they oversee.
The "Departmental Head Accountability System" aims to clarify and institutionalize the responsibilities of department heads, making them directly accountable for both their management teams and operational outcomes. According to Li, while department heads have always borne responsibility for their departments’ performance, the government had yet to formalize this into a comprehensive, system-wide mechanism. Now, that’s changing.
The new system introduces a two-tier investigation process for departmental issues. General problems will be handled internally by department heads, but severe or systemic failures—especially those implicating the heads themselves—will trigger investigations by an independent accountability team. This mechanism, Li explained, is designed to ensure fairness and impartiality, with the independent team operating outside the regular government hierarchy. "When problems arise in a department, consequences can include warnings, reprimands, withholding pay increases, demotions, salary deductions, forced retirement, or even dismissal," Li stated, underscoring the seriousness of the reforms.
To implement these changes, the government will expand the current Civil Service Disciplinary Committee’s remit to include investigations under the new accountability system. The committee, which has traditionally advised the Chief Executive on civil service discipline, will now play a more active role in rooting out inefficiencies and misconduct. Subsidiary legislation under the Civil Service Disciplinary Committee Ordinance is set to give these reforms legal teeth. The committee has expressed full support for the move, affirming its commitment to maintaining a high-performing civil service and vowing to uphold impartiality in its new responsibilities.
But the Policy Address didn’t stop at internal government reforms. Li was quick to tie these governance upgrades to his broader mission: improving the lives of Hong Kong’s people. "Improving people’s livelihood is the ultimate goal of my administration, and economic growth is its foundation," he declared during the Legislative Council’s Q&A session on September 18. He pointed out that this year marks a pivotal moment in national planning, with Hong Kong urged to align closely with the country’s strategic direction as the "14th Five-Year Plan" concludes and the "15th Five-Year Plan" begins to take shape.
Li highlighted his administration’s ongoing efforts to drive social reform and economic development—a campaign he said has already yielded tangible results across various sectors. Among the innovations discussed was the Northern Metropolis Development Committee, which he leads. This body is tasked with dismantling bureaucratic barriers and crafting bespoke legal and policy frameworks to spur regional growth. Li described the Northern Metropolis as Hong Kong’s "new engine of development," brimming with untapped potential.
Yet, for many lawmakers, the immediate concern was the labor market. Several legislators pressed Li on the impact of imported foreign labor on local employment, particularly in the catering and construction industries, where unemployment rates have soared to 7%. DAB lawmaker Leung Hei described the situation as "dire," asking whether the government would consider an emergency "circuit breaker" mechanism to halt labor imports if jobless rates in any sector exceed a certain threshold.
Li responded by reaffirming his commitment to prioritizing local employment. He explained that the 2023 foreign labor import policy was a reluctant response to an aging population and a shrinking workforce. "In 2018, Hong Kong’s labor force peaked at 3.67 million. By 2023, it had dropped by more than 190,000, and this year it fell further to 3.44 million," Li said. The aging trend is stark: "The number of workers under 60 fell by 300,000 between 2018 and 2023." He warned that labor shortages could ultimately hurt local workers if businesses are forced to scale back or close.
On the risk of abuse, Li was emphatic: "I strongly oppose misuse of the mechanism." He outlined measures to increase local recruitment for frontline roles and security staff, and promised that authorities would closely monitor the situation and adjust policies as needed. The government, he said, would not "turn a blind eye" to changing facts on the ground.
Labour Federation lawmaker Lam Zing-king raised concerns about the rising overall unemployment rate, which now stands at 3.7%. He asked whether the government would cap foreign labor numbers in sectors where unemployment climbs to 7% or 8%. Again, Li stressed that the government would "ensure local employment takes precedence," intensify crackdowns on illegal workers, and rigorously scrutinize applications for importing labor. For especially hard-hit industries, employers must now prove recruitment difficulties, and the local hiring period has been extended from four to six weeks.
Turning to economic transformation, Li acknowledged that some sectors have been hit harder than others. While industries like finance and trading have seen incomes double, sectors such as education are grappling with labor shortages. Li pointed to new initiatives aimed at diversifying Hong Kong’s economic base, including the introduction of an aircraft dismantling company—a first for the city. Such moves, he argued, will create entire new industrial chains, spanning upstream and downstream opportunities in trade, education, and beyond.
"We want to shift away from an overreliance on the service sector," Li explained, noting that while services remain vital, their cyclical nature exposes workers to economic shocks. A more diverse industrial landscape, he said, would provide "many stable jobs and secure incomes for our workforce."
Throughout both his Policy Address and the subsequent Q&A, Li Ka-chiu repeatedly thanked lawmakers and citizens for their input. "This year’s Policy Address combines government planning with the wisdom of the people," he said, expressing gratitude to everyone who contributed ideas.
As Hong Kong embarks on this new chapter of civil service reform and economic adaptation, the city’s leadership is betting that clearer accountability and a more dynamic, diversified economy will help it weather current challenges—and set the stage for a more resilient future.
