Hong Kong’s chief executive and top government ministers will take a pay cut of more than 5 percent as part of the territory’s belt-tightening during the economic downturn, reports said yesterday.
Chief Executive Donald Tsang (曾蔭權) and other senior officials were expected to take a cut of 5.38 percent, the South China Morning Post and other media reported, citing an unnamed source.
A spokeswoman for the chief executive’s office would not confirm the reports but said that Tsang had vowed to “stand shoulder-to-shoulder with the people” during the difficult economic times.
ECHO OF SARS
The pay cut will be the first top-level drop in wages since 2003, when senior officials took a 10 percent reduction during the SARS outbreak. The disease killed around 300 people in the territory and turned its financial hub into a virtual ghost town.
The latest move comes as the government was expected to announce a pay cut for around 18,000 of the city’s best-paid civil servants, a move that has sparked protests from labor unions.
Tsang was criticized last year for creating 17 new highly paid political positions.
The Post said Tsang earns HK$371,855 (US$47,674) a month.
Hong Kong fell into recession in the third quarter of last year and last month the government slashed its growth forecast for this year, saying the economy would contract 5.5 percent to 6.5 percent this year, from a previous forecast of 2 percent to 3 percent.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Nano-X Imaging Ltd, a start-up founded by Israeli investor Ran Poliakine, is joining forces with South Korean chipmaker SK Hynix Inc to build a machine that could disrupt a century-old X-ray industry. Valued at about US$2 billion after listing on the NASDAQ last month, Nano-X is seeking to transform a multibillion-dollar industry that has essentially relied on the same technology since Nobel Prize in Physics winner Wilhelm Roentgen discovered X-rays in the late 19th century. Nano-X’s device uses semiconductors instead of metal filaments to generate X-rays. The backing of SK Hynix, the world’s second-largest maker of memory chips, is a boost for
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into