Hong Kong authorities are stepping up efforts to encourage the use of a prefabrication construction technique, amid concerns from lawmakers that the process is suffering from limited uptake.
Since its introduction in 2018, only 69 public projects and two private initiatives have adopted the “modular integrated construction” (MiC) technique, said Secretary for Development Bernadette Linn Hon-ho on Tuesday.
The method employs free-standing, integrated modules from a mainland Chinese factory that undergo quality inspections before being installed at the project site. Linn said the technique could save manpower as the construction process largely took place in factories rather than at the project site, noting Hong Kong expected to record a manpower shortage of more than 40,000 workers in 2027.
In response to concerns from lawmakers about the lack of incentives concerning old land lots to encourage the private sector to adopt the method, Linn stressed the government would “respond positively.”
Lawmaker Louis Loong Hon-biu, who represents the real estate sector, said the current incentives, such as granting a 10 per cent gross floor area concession for relevant projects, failed to cover 999-year land leases granted decades before the city returned to Chinese sovereignty in 1997.
“At the moment, this policy has not covered lots with old leases … The government cannot ignore this as it promotes the technique,” he said.
Under the current system, a standard land lease in Hong Kong lasts for 50 years.
Developers felt the MiC method had limitations since each flat’s size was determined in the manufacturing process and was unlikely to be modifiable in response to market changes, Linn noted.
A government paper submitted to the panel said authorities plan to annually outline all coming MiC projects taking place in the next five years, strengthen training in the technique and implement a manufacturer certification scheme.
Authorities would also gauge the feasibility of investing in a MiC supply chain by the end of this year, as well as explore the product overseas, according to the paper.
Linn touched on legislators’ concerns over the lack of space for manufacturing and storing the modules, saying the city’s scarce land supply meant it would mainly focus on research and development.
The bay area refers to Beijing’s initiative to turn Hong Kong, Macau and nine mainland cities into an economic powerhouse.
