“We hope the government can use actual actions and excellent results as its strongest rebuttal to smears of Hong Kong by foreign forces that say ‘Hong Kong is dead’ or ‘recovery is unlikely’,” he said.

The lawmaker said the government must increase its revenue and reduce expenses as it had recorded a “massive” deficit of HK$101.6 billion (US$17.4 billion) as of March 31.

Authorities should also adopt a multi-prong strategy to fuel economic growth, such as developing international e-commerce businesses and rebuilding the city’s status as an events capital, he added.

Lo said such efforts would make foreign talent and investors more confident about considering Hong Kong, as well as helping the city to achieve its target of becoming a centre for eight sectors as outlined in Beijing’s latest five-year development plan.

In February, former Hong Kong-based chairman of Morgan Stanley Asia Stephen Roach wrote an opinion piece titled: “It pains me to say Hong Kong is over”.

Roach later defended his remarks as a “wake-up call” and attributed his stance to a “growing undercurrent of angst” over Hong Kong’s future.

On Wednesday, Democratic Alliance for the Betterment and Progress of Hong Kong chairman and lawmaker Gary Chan Hak-kan said the government should step up efforts to explain the city’s domestic national security laws as he praised the swift passage of the Article 23 law last month.

“The explanation work regarding national security needs to be done continuously, especially with the complex and ever-changing international environment where there is a chance of national security risks occurring in Hong Kong,” he said.

The legislator said he hoped officials could continue to explain the applicability and protection granted by national security legislation in the current environment, particularly to the foreign business sector, financial intuitions and investors.

Chan said this would further increase the latter groups’ confidence in investing in Hong Kong, as well as affirming belief that the city possessed further opportunities, safety and stability.

Hong Kong’s economy grew between 2.5% and 3.5% in first quarter, Paul Chan says

Fellow lawmaker Tang Fei said Western media and institutions had used the 2020 Beijing-imposed national security law as a chance to bad-mouth Hong Kong, dissuading some investors and talent from coming to the city.

“The government or the Legislative Council, besides rebutting them head-on, should further emphasise the positive relationship of protecting national security and protecting external investment,” he said.

“It is precisely with the protection of the national security law, that funds coming to Hong Kong for investment can be protected even better than before, no matter if they are from the mainland or overseas.”

He argued that such better protections had resulted from the reduced effect of politics on the economic environment, while private assets were also more secure thanks to an enhanced rule of law.

Wednesday’s debate also touched on the costs incurred by former leader Lam’s office, with lawmaker Dominic Lee Tsz-king questioning the need for such an expense at a time of financial deficit.

“Hong Kong is now facing such a large deficit, the economic environment is so bad, our lower-income residents have such a bad living environment,” he said. “Why is the former chief executive’s office renting such a super luxurious space?

“Why do not they consider moving it to another place or government property?”

Ex-Hong Kong leader Lam needs office with HK$9 million budget ‘to match status’

Following the end of Lam’s five-year term in 2022, the government rented a 2,874 sq ft grade A office for her in the Admiralty shopping centre and office complex.

Hong Kong’s director of administration earlier revealed Lam’s office had cost the city an estimated HK$9.17 million in the 2023-24 financial year, including HK$5.67 million in rent for the space at Pacific Place in Admiralty and HK$2.86 million in staff expenses.

The sum accounted for about 44 per cent of the total expenditure for running all four former leaders’ offices, which stood at HK$20.99 million in 2023-24.

Lee said on Wednesday that he was dissatisfied with the government’s decision not to comment on the matter except to say Legco had already approved the expense.

“If they are using close to HK$10 million a year, without any transparency, how can residents not be angry,” the lawmaker said.

Lawmaker Michael Tien Puk-sun also raised concerns over Lam’s expenses and suggested authorities situate her office at a government property or buy a less expensive space that could house the future offices of former city leaders.