1st LD Writethru: Hong Kong's financial chief says social issues shake economy

Hong Kong's Financial Secretary Tsang Chun-wah said on Wednesday that social conflicts will add uncertainties to the already adverse economic environment.

Before revealing key economic figures, Tsang mentioned the Mong Kok riot happened during the Lunar New Year holiday when delivering an annual budget at the Legislative Council of Hong Kong Special Administrative Region(SAR).

"Politics and economics are closely intertwined," he said. "Political volatility will unavoidably impact on our economy."

Some 300 radicals attacked police officers and reporters in early morning on Feb. 9, provoking a large-scale riot and causing dozens of injuries.

Tsang said he believe many people shared his feelings toward the incident and he was troubled by the devoured core values that people long cherished.

As the financial secretary, Tsang believed it is the duty of the SAR government and himself to mobilize resources to maintain Hong Kong's economic development and fiscal health, support local enterprises and safeguard the jobs of workers.

A highly charged atmosphere has continued to deteriorate since the unlawful Occupy Central movement a year and a half ago, said Tsang.

Social conflicts will add uncertainties to the already adverse economic environment, said Tsang, adding that he anticipate intensified political disputes over the coming months as 2016 is an election year for Hong Kong.

In addition to various fiscal measures in his budget, Tsang said one of his concerns over the public finances of the budget is the slow progress of deliberation in the Legislative Council which resulted in a mounting backlog of funding proposals and delayed commencement of livelihood-related projects. Enditem