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Hong Kong Budget: Surplus Rebounds and Alignment with the 15th Five-Year Plan

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Hong Kong Financial Secretary Paul Chan announced the 2026/27 Budget on the 25th. He stated that benefiting from robust stock market performance and accelerated economic growth, which boosted stamp duty and profit tax revenues, the government’s consolidated account for 2025/26 has been revised from an earlier projected deficit of approximately HK$67 billion to a surplus of HK$2.9 billion.

The Budget also introduced multiple relief measures and tax concessions, including reductions in salaries tax, profits tax, and rates; increases in basic, married person, and child allowances; and an additional month of benefits for recipients of Comprehensive Social Security Assistance (CSSA), Old Age Allowance, and Working Family Allowance. Additionally, the government will increase the number of vouchers for community care and residential care services for the elderly, and raise the tax deduction ceiling for residential care expenses.
Regarding housing and land supply, the authorities plan to prepare land for approximately 98,000 private residential units over the next five years and temporarily suspend the release of commercial land. The regulatory framework for “Simple Housing” will be implemented in March. The development of the Northern Metropolis remains a key policy priority. The government intends to inject tens of billions of dollars into multiple relevant institutions to accelerate projects such as the Lok Ma Chau Loop, the San Tin Technology City, and the Hung Shui Kiu area.

Furthermore, the Budget proposes proactive alignment with the national 15th Five-Year Plan. The Chief Executive will also formulate Hong Kong’s first five-year development plan, aiming to play a more proactive role in areas such as AI-driven modern industrial development, advancing high-level technological progress, and attracting and gathering talent.

Commentary:

The most prominent feature of this Budget appears to be the “shift from deficit to surplus”. However, closer examination reveals that this so-called “HK$2.9 billion surplus” is fundamentally a fabricated fiscal illusion. This figure does not stem from actual revenue exceeding expenditure but is entirely fabricated through government accounting maneuvers: by raising the bond issuance ceiling from HK$700 billion to HK$900 billion, the government artificially created a short-term “surplus” on paper to appear financially sound. In reality, this money remains borrowed and does not represent genuine savings.

More absurdly, this practice not only misleads the public but also reflects the government’s disregard for fiscal transparency. The government uses clever number games to paint a rosy picture, attempting to convince citizens that Hong Kong’s finances are healthy and secure. Yet in reality, infrastructure spending, social services, and various expenditures remain substantial, with genuine fiscal pressures showing no sign of abating. This “paper surplus” is merely a temporary illusion, completely obscuring Hong Kong’s long-term structural fiscal issues. It may even foster misplaced trust in government policies among the public who remain unaware of the truth.

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Victorian Liberal Candidate Counselled Over Volunteer Internship Program

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Victorian Liberal Party candidate for Glen Waverley, Jacky Sun, has been counselled by the party following questions over a “volunteer internship program” recruiting international students for political volunteering.

The issue arose at a Mandarin-speaking university student orientation event held in North Melbourne this Saturday. Bilingual posters were distributed promoting a “volunteer internship program” running from August to November. Tasks included door-knocking, letter-dropping and attending campaign fundraising events. Participants were also offered opportunities to meet politicians and obtain reference letters.

The posters did not identify any political party or candidate. However, a Liberal campaign poster featuring Jacky Sun was displayed on the other side of an A-frame sign holding the volunteer posters. One student said that after asking the recruiters, she was told the program was for “the opposition”, would mainly operate in Glen Waverley, and required participants to speak Mandarin.

A Liberal spokesperson did not directly answer whether the program was recruiting volunteers for Jacky Sun or the Liberal Party. The spokesperson said Sun was not present at the event and stressed that “this is not Liberal Party material”. The party also confirmed that Sun had been “counselled” over the matter, but did not explain the specific reason.

The issue also involves Jacky Sun’s wife, scientist Danzi Song. The email address listed on the English poster was associated with “Daisy Song Consulting”, while Danzi Song uses the English name Daisy Song on LinkedIn. However, the ABC could not independently confirm whether the email address belongs to her, and she did not respond to inquiries.

Commentary

The program was promoted as an “internship”, community service opportunity and a chance to receive a reference letter, while also offering access to politicians. However, the posters did not clearly identify which political party or candidate was involved. For international students with limited political experience or knowledge of Victorian politics, this could easily appear to be a general community volunteering opportunity, raising questions about transparency.

More notably, contact details associated with Jacky Sun’s wife appeared on the poster. While there is currently no evidence proving a direct connection between the two, the link itself raises questions about whether the recruitment program was connected to Jacky Sun’s campaign.

For a political candidate, questions surrounding political recruitment, transparency and electoral rules can affect public perception. With the Liberal Party confirming that Sun was counselled but providing no specific explanation, failing to clarify the questions surrounding the program could have a negative impact on his political image.

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Colombia Earthquake Death Toll Rises to 250

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A powerful 7.4-magnitude earthquake struck western Colombia, with the official death toll rising to at least 250. Rescue workers worked through the night searching for survivors in collapsed buildings and rubble, racing against time during the critical rescue window. Authorities warned that the death toll could continue to rise as search and clearance operations continue.

The UN Office for the Coordination of Humanitarian Affairs initially estimated that around 5,000 homes were damaged, with dozens of buildings collapsing and hundreds of other homes sustaining varying degrees of damage, highlighting the severe impact on infrastructure and residential areas.

Rescue operations remain focused on the worst-hit areas, where emergency workers are using heavy machinery and manually clearing rubble in an effort to find survivors who may still be trapped inside buildings. As the extent of the damage in some areas remains under assessment, the full number of casualties and the scale of property losses have yet to be determined.

The international community has also begun providing emergency assistance. The United States announced US$15.5 million in aid to provide temporary shelters and food in affected areas, as well as support damage assessment efforts. The Inter-American Development Bank said it had prepared US$50 million in funding that could be made available for post-earthquake reconstruction if needed.

The local government is currently prioritising search and rescue operations, medical care and temporary accommodation. As further assessments are carried out in affected areas, authorities will gradually determine the overall extent of the destruction caused by the earthquake.

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Australian Police Trial Real-Time AI Facial Recognition

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Western Australia Police have launched Australia’s first public-facing trial of real-time AI facial recognition, using cameras in Perth and Fremantle to scan pedestrians’ faces in real time and compare them against police watchlists, raising concerns over privacy and the expansion of surveillance powers.

Police began using technology company NEC’s NeoFace m40 system in June. In its first week, the system scanned more than 130,000 faces and compared them against a watchlist of around 4,000 people. The list includes people suspected of serious crimes, missing persons, and individuals police believe may pose a risk to themselves or others.

Police said the trial had delivered encouraging initial results, triggering 33 alerts and contributing to 18 arrests. Authorities said real-time facial recognition could help officers identify people of interest more quickly, improving public safety and law enforcement efficiency.

However, privacy experts and legal advocacy groups have questioned how police decide who is placed on the watchlist, how the data is stored, and the risk of misidentification, arguing that there is insufficient transparency. The choice of trial locations has also attracted scrutiny, with concerns that the technology could result in disproportionate surveillance of Indigenous communities.

Unlike “one-to-one” facial recognition, which is used simply to verify an individual’s identity, real-time “one-to-many” systems can scan and compare faces on a large scale in public places.

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