Recently, Reuters reported that Hong Kong aims to bring down its civil services jobs by 10,000 and use AI to combat the rising deficit as the country is currently struggling with weak property markets, geopolitical tensions and economic uncertainty.
This has become a common trend in Asian nations to replace human jobs with automation and AI. For instance, a similar trend was observed in Singapore, where DBS plans to slash 4,000 jobs in three years and use AI instead.
According to Financial Secretary Paul Chan, “It gives us a clear pathway towards the goal of restoring fiscal balance in the operating account, in a planned and progressive manner.”
Further, Chan announced that 10,000 civil servant positions would be eliminated by April 2027, reducing the civil service by 2% annually over the next two years. Additionally, public sector salaries will remain frozen this year.
He stated that the “reinforced” fiscal consolidation program aims to cut public expenditure by a cumulative 7% through the fiscal year ending March 31, 2028.
He explained that the spending reductions are intended to establish a “sustainable fiscal foundation for future development” following a steep decline in land sale revenue, resulting in a deficit of HK$87.2 billion—nearly double the previous projection of HK$48.1 billion.
