Thank you, Deputy President. First of all, I would like to thank the Chief Executive for accepting the Liberal Party’s proposal for a methanol industry chain in the Policy Address. Some people who are familiar with Policy Addresses have told me that “industries” were seldom mentioned in previous Policy Addresses and could be included in the Policy Address in no time. It is precisely because of the rapid development of this industry that I would like to talk about the importance of expediting the development of a green methanol industry chain in Hong Kong.

When I first came across this topic, I learnt that green methanol is one of the emerging low-carbon transport fuels in the world which is particularly valued by the ocean shipping industry. According to the latest carbon emission requirements of the International Maritime Organization (“IMO”), starting from 2025, the shipping industry is required to progressively reduce carbon emissions by 80% by 2050 through energy conservation and reduced use of fossil fuels. At present, among the alternatives to conventional fuels, liquefied natural gas (“LNG”) and green methanol are the most suitable for ocean-going vessels, and green methanol is much more effective in reducing carbon emissions than LNG. Therefore, the use of green methanol in new shipbuilding orders is accelerating with the launch of the first batch of green methanol vessels this year, and at a faster rate from mid-2025. The maritime industry estimates that the demand for green methanol will grow by millions of tonnes per year, representing billions of US dollars in business. Although green methanol requires similar logistics and refuelling facilities as conventional petroleum fuels, it takes money and time to build new facilities or retrofit existing ones, so all ports need to make timely preparations. Will Hong Kong be left behind?

Hong Kong used to be the busiest port in the Far East, but in recent years, it has fallen behind places like Shanghai, Singapore and South Korea in terms of cargo handled and volume of bunker fuel supplied to vessels. In the past, due to cost and other factors, ports with oil refining industries have attracted international shipping companies to operate liner services to these ports, berthing their vessels for refuelling and loading/unloading of cargoes, and indirectly attracted the freight industry and manufacturers to settle in surrounding areas. As green methanol is not produced from conventional petroleum, a switch to green methanol by the shipping industry may lead to a reorganization of the layout of bunkering ports. In theory, all major ports will be back on the same starting line.  In fact, the Port of Singapore has already demonstrated its first green methanol refuelling operation, while South Korea is preparing to start green methanol refuelling operations with the delivery of newly built green methanol vessels. Given that ports in neighbouring regions have already taken the lead, if Hong Kong can develop a green methanol industry chain in time, coupled with the advantages of the support of the manufacturing industry and the port cluster in the Greater Bay Area (“GBA”), it should be able to maintain the competitiveness of its port and even attract more liner services to Hong Kong for refuelling and loading/unloading of goods, thereby promoting higher competitiveness of other industries in the region.

Simply put, a green methanol industry chain comprises supply, transportation, loading/unloading, storage, plus an internationally recognized carbon certification and management regime, etc. In particular, in terms of certification, as Hong Kong’s legal system is connected with the rest of the world, and with its high standard of corporate compliance, Hong Kong has a significant advantage in business transactions that require strict verification of products’ compliance with the international carbon emissions standards.

The development of a green methanol industry chain can be described as a systematic project straddling a number of industries and professions. More importantly, it is necessary to commence the development well in advance to cope with the massive demand that will emerge in a year or so. Before the market matures, the Government must play the role of a facilitator, especially in infrastructure such as terminals and oil depots, by making appropriate use of public funds and attracting the participation of the relevant trades through public-private partnership (“PPP”). In the past, the construction of some major transport infrastructure such as tunnels and aviation fuel depots was expedited through PPP, while ensuring the safety and professional standards of their future operation.

Apart from thanking the Chief Executive and the Policy Bureaux for taking on board the views, I would also like to thank Mr Frankie YICK of our Liberal Party who has set up an interdepartmental and cross-sector working group to proactively promote the development of industries. The first meeting of the working group was held earlier with the participation of government representatives from the Transport and Logistics Bureau, the Marine Department, the Environmental Protection Department, the Electrical and Mechanical Services Department and the Fire Services Department. We can see at a glance how difficult it is to get people to work together as the task is spread across different bureaux and departments.

In addition, interested and capable members of the industry, including representatives from local and international shipping companies, as well as upstream and downstream stakeholders of the green methanol industry chain, also attended the meeting. At the meeting, they all clearly expressed their willingness to participate in the development of Hong Kong into a regional green methanol hub, and urged the Government to take the lead in building the green methanol industry chain, so as to put into practice the initiative of redeveloping Hong Kong into a regional green shipping hub into practice, in the hope that the Government will expeditiously implement the policy on the development of the green methanol industry chain.

Apart from attracting the international shipping industry, it should be the vessels operating in the waters of Hong Kong and GBA that could provide more practical help to Hong Kong in achieving the carbon neutrality vision. The Government should make good use of the existing New Energy Transport Fund to encourage the industry to switch to more environmentally friendly methanol, from grey methanol to blue methanol and then to green methanol, which can be done step by step by increasing the use gradually rather than doing it all at once. The Government also owns a large fleet of vessels and it should take the lead proactively.

To achieve carbon neutrality, I am concerned not only about the shipping industry but also about land transport. Think about this: Thousands of fuel-intensive buses and lorries have begun to switch from diesel to hydrogen. Such a large supply of hydrogen will require the development of an industry chain ahead of time. I believe it is necessary to diversify the supply of hydrogen. Apart from the extraction of hydrogen through gas pipelines, which is readily applicable at the trial stage, the technology to produce hydrogen from electricity and methanol should be a long-term solution to ensure the supply of hydrogen. The production of green hydrogen from green methanol is even the true zero emission solution. Therefore, the Government’s promotion of the green methanol industry chain can also solve the problem of decarbonization in sea and land transport.

Deputy President, I would like to talk about another issue. The Policy Address mentions the relaxation of the restrictions on non-local postgraduates studying in various universities in Hong Kong to take up part-time jobs. On a number of occasions, I have urged the Government to relax the restrictions for both undergraduate and postgraduate students, and the Liberal Party also raised this issue with the Chief Executive during the consultation on the Policy Address.

In addition, when I was invited to The Hong Kong University of Science and Technology (“HKUST”) earlier, I also mentioned the relaxation of the requirement for international undergraduate students to take up part-time jobs outside the campus. Nancy IP, President of HKUST, expressed her support for this. On the same occasion, a Member of the Legislative Council with trade union background also praised my proposal as a good idea. This Policy Address only mentions the relaxation of the relevant restrictions for postgraduate students. The Liberal Party and I will continue to urge the Government to relax this policy to include international undergraduate students. The Liberal Party’s proposal is not only aimed at solving the problem of labour shortage. According to my experience of studying in the United States, part-time jobs not only enable students to earn their tuition fees and living expenses, but more importantly, help them build up their social networks and enhance their sense of identity and belonging towards the local community. This will be a positive force for them to consider staying behind for development and even starting their own businesses after graduation. Given the same situation in Hong Kong, it is definitely worth relaxing the restrictions.

Deputy President, I so submit.