Advertisement
Opinion | Is the HK$580 billion cost of creating artificial islands off Lantau worth it?
- Infrastructure projects are often dubbed white elephants during the planning stage, but in retrospect their contributions are invaluable
- Shedding new light on cash-flow management and industry development initiatives for the artificial islands could help clear up lingering concerns
Reading Time:4 minutes
Why you can trust SCMP
24
The Hong Kong government told lawmakers last month that the latest estimate for building artificial islands off Lantau had risen to HK$580 billion (US$74 billion), up from HK$500 billion. Society remains divided over the project, and it is hard to draw a definite conclusion about whether it would really be worth the huge cost.
Advertisement
In a bid to assess the benefits more accurately, it could help to assess three major questions raised by the public about the proposal.
First, is reclamation necessary? According to the Census and Statistics Department, Hong Kong’s population is expected to peak in the next two decades. Thus, some contend that spending huge amounts of time and money on the reclamation works would be unnecessary when long-term housing demands are projected to taper off.
However, this reflects a complete disregard for the plight of those crammed into small flats while paying exorbitant rents. Also, the estimates have not taken into account recent changes in population policies.
The 2022 policy address outlined a number of initiatives to complete for talent and enterprises. Given its excellent education and medical services, coupled with low tax rates and a favourable business environment, Hong Kong remains an international draw.
Advertisement
The initiatives could prompt more professionals to settle in Hong Kong. The goal is to attract a minimum of 35,000 talented individuals annually, who would stay for at least a year, between 2023 and 2025. This could result in a changing population structure, creating additional housing needs.
Advertisement