Sun Yuhuan: The overall impact on the costs of Hong Kong enterprises after the annual review of the statutory minimum wage is relatively minor.

On March 25, the Secretary for Labour and Welfare in Hong Kong, Law Yee Kam, stated in response to questions from lawmakers that the overall impact on the cost of Hong Kong businesses after changing the statutory minimum wage to "annual review" is relatively minor. The Hong Kong government has been committed to assisting businesses, particularly in the food and beverage industry, by simplifying food licensing regulations without compromising hygiene and food safety, and implementing measures to reduce compliance costs. Law Yee Kam mentioned that the Minimum Wage Commission has reviewed the statutory minimum wage level using a formula for the "annual review." The Executive Council accepted the Commission's recommendation on February 10 this year; if approved by the Legislative Council, the statutory minimum wage level will be increased from the current HK$42.1 per hour to HK$43.1 per hour on May 1, with an adjustment of 2.4%. Law Yee Kam emphasized that labor costs are only a fraction of operating costs for businesses, influenced by factors such as market supply and demand and technological applications. The Commission assessed that the new statutory minimum wage level would have a relatively minor overall impact on business costs, unemployment rates, and inflation. To support the food and beverage industry, the Hong Kong government has introduced various schemes and funds for small and medium-sized enterprises to apply for in order to meet their development needs, such as the "D-Biz Programme" to obtain funding for digital transformation and the "SME Financing Guarantee Scheme" for guaranteed loans. The Employee Retraining Board and Continuing Education Fund also provide or subsidize relevant training to support the continuous development of the food and beverage industry. In terms of cost reduction, Hong Kong has implemented policies such as a comprehensive license covering various restrictions on selling food, eliminating the need for businesses to apply for individual licenses for each type of food. The government has also proposed legislative amendments to allow restaurants to apply for permits allowing dogs to enter, catering to dog owners dining out and expanding opportunities for the catering industry. Additionally, the Business Facilitation Advisory Committee, its associated working groups related to the food industry, and business liaison groups will continue to provide recommendations on feasible measures to improve regulatory efficiency and facilitate business operations for the government and the business sector (including the food and beverage industry).